Debtwire Middle-Market – 1/10/2022

Loan pricing tightens amid record demand from
CLOs and transition away from LIBOR


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Source: Debtwire Par

With the transition from LIBOR to SOFR (Secured Overnight Financing Rate) beginning to play out towards the end of the year, pricing dynamics led to a sharp tightening in loan yields from previous years. While the average margin on first lien institutional loans stands at 362bps for the year, on par with the 373bps level seen last year, the average yield has fallen to just 4.31% from 5.10%.