Libor floors, used to guarantee a minimum spread to investors in a low rate environment are now a major theme in the market given rising interest rates. In 2015, 98% of institutional term loans were issued with a Libor floor, the bulk of which were done… Login to Read More...
Middle market lending failed to impress in 2015 as both the sponsored and non-sponsored markets were down roughly 30% year-over-year. In the non-sponsored market, volatility spooked issuers in the second half of the year causing many to hold off… Login to Read More...
Private equity sponsors once again took a back seat to leveraged corporate issuers, struggling to garner 42% of total leveraged loan volume amid limited deal making opportunities. With demand for assets at a premium for much of the year, PE sponsors wrestled with… Login to Read More...
At US$2trn, US syndicated loan issuance was down 6% compared to 2014. Leveraged loan issuance fell 17% in 2015 to US$783bn but this was offset by a 4% increase in investment grade lending which reached a record US$873bn. At $US740bn, US new money lending was the third-highest on record… Login to Read More...
The secondary market continues to come under pressure, with increased differentiation between the so called haves and have-nots. Flow names fell by roughly 100 bps in November and are off another 55 bps so far this month. At a broader market level, multi-quote institutional term loans also fell by around 100 bps in… Login to
The average purchase price for large corporate LBO deals is still well below the large-scale deals struck during the buyout boom, but select mega deals are resurfacing. The average purchase price year to date for large corporate LBO deals is around $1.8 billion, slightly behind 2014 levels of $1.9 billion, but far lower… Login to
Arrangers continue to show some discipline with regards to structuring LBO deals as the year comes closer to an end. The share of buyout deals that are levered seven times and greater has fallen to only 14% in 2015, down from 26% last year and down from 39% at the peak of the… Login to
Loan mutual fund & ETF assets under management (AUM) finished October at $127 billion, their lowest level since June 2013, as investors continued to pull money from these funds and loan prices shifted lower. Loan funds AUM is down over 10% this year, and is now 27% off the record high of $174 billion set…
U.S. CLO assets under management (AUM) have edged higher recently to $417 billion, while European CLOs are at €65 billion. The climb in U.S. CLO AUM this year allied with the relatively stable size of the institutional loan market has pushed the CLO share of the market up six… Login to Read More...
For the first time since late 2011, the net percentage of domestic banks reporting tightening terms over the past three months turned positive. Specifically, 8.8% of domestic banks reported tightening credit standards for approving applications for C&I loans or credit lines other than those used to finance mergers… Login to Read More...