Total leverage on large corporate US LBO loans
remains high in 4Q19, but senior leverage declines

Chart

At a time when investors have been pushing back on pricing and structure on riskier loans, total leverage on US LBO deals remains high. So far this quarter the average total debt to EBITDA level for large corporate LBO deals is near 7.0 times, a similar level to 3Q19. Although total leverage remains high, senior leverage has declined as more LBO deals have contained an unsecured bond component.