DL Deals: News & Analysis – 7/17/2023

KBRA DLD Default Index: 2023 forecast is 2.5% for sponsored deals

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KBRA DLD’s 2023 default forecast is 2.5% for sponsor-backed direct lending loans, equating to roughly 30 defaults against the roughly 1,200 sponsored borrowers in the KBRA DLD Default Index.

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The year-to-date (YTD) sponsored rate is 1.2%, which includes 14 defaults—mainly bankruptcies. Searchlight Capital Partners-backed MediaMath marked the most recent default at the end of June.