US institutional primary yields widen to 10.26% in 2Q23TD

After plummeting in March, activity has picked up in the institutional market. However, issuers are facing higher yields on average so far this quarter. After a huge jump in 3Q22, average yields were relatively flat in the last two quarters, as higher base rates were compensated by tighter spreads and OIDs. This quarter, however, every single component of yield has widened. In turn, the average primary yield, assuming a 3-year term to repayment, for first-lien institutional term loan Bs is 10.26% in 2Q23, up from 9.54% in 1Q23.

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