Debtwire Middle-Market – 5/22/2023

Investors steer clear of riskier assets


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Source: Debtwire Par

Debt issued in the institutional leveraged loan market has shifted back towards the favor of double B facilities over single B rated tranches. So far in 2023, almost 40% of activity has been double B rated, marking the highest percentage in the last five years.

The bond market has followed a similar trend, with the share of debt issued as secured notes having remained at record levels of near 60% over the past three quarters. The historical average ranged between 25%-45% in the last decade, highlighting the current move towards safer assets.