Leveraged Loan Insight & Analysis – 10/17/2022

U.S. Primary yields soared in 3Q22


In 3Q22, first-lien institutional yields skyrocketed to levels not seen since the credit crisis. The average primary yield, assuming a 3-year term to repayment on first-lien institutional term loan Bs was 9.45% in 3Q22, up over 300bp from 2Q22 levels. While spreads widened, they only accounted for 19bp of the total increase in yields, on average.