Institutional loan pricing shifts wider in August
Source: Debtwire Par
To begin the year, a surge of repricing and refinancing activity helped to push loan pricing to historically tight levels – in January, when repricing volume spiked to USD 43.2bn, average margins on institutional first lien loans fell to just 333bps, with yields averaging 3.92%. In August, repricing volume was a mere USD 0.5bn as Sotheby’s was the only issuer to reprice an existing facility.
Institutional loan issuance declined 40% month-over-month to USD 50.5bn, its lowest level this year, though year-to-date volume is up 87% to USD 663.5bn.