Leveraged Loan Insight & Analysis – 10/23/2017

Leverage levels diverged on middle market sponsored deals in 3Q17

When it comes to lending to smaller issuers, bank and non-bank lenders have very different risk tolerances in today’s market. Back in 2013 banks and non-bank lenders both lent to middle market issuers at similar leverage levels. However over time that has diverged due to regulatory pressures on banks and strong fundraising efforts of direct lenders.