Debtwire Middle-Market – 10/31/2022

Institutional share of leveraged loan issuance falls to new low in 3Q22


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Source: Debtwire Par

Institutional loan issuance has plummeted to a third of the levels seen last year. During the first nine months of 2022, institutional volume was USD 233.2bn, down 68% from USD 726.9bn in 9M21, and 39% below the USD 384bn seen in 9M20 when COVID-19 first roiled markets. In the secondary market, where lenders offload that debt to investors, bids have tumbled more than seven points this year, amid worries over the Federal Reserve’s aggressive rate hikes to combat inflation and a looming recession.