Leveraged Loan Insight & Analysis – 7/25/2022

Middle market unitranche leverage declines in 2Q22

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Leverage on middle market unitranche loans tightened to 5.57x in 2Q22, its lowest level since 3Q20, as it continued to retreat from the record highs seen in 2021. From a pricing perspective, blended spreads were flat for middle market unitranches, averaging 600bp in the most recent quarter.