LBO deal flow drops sharply in 2020;
fewer large transactions hits new money loan supply
Source: Debtwire Par
As we approach the end of 2020, LBO financings have helped boost loan supply this quarter, with syndicated institutional loans backing buyouts climbing to USD 28.7bn, a sharp jump from the USD 8.9bn recorded in 3Q20. Despite the increase in deal flow this quarter, LBO institutional loan issuance is at just USD 79bn year-to-date and is set to fall well short of the USD 119bn posted in full-year 2019.