Aided by an increase in junior debt, total leverage on
large corporate US LBO loans increases to 7x this quarter
LBO activity in the US syndicated loan market remains robust this quarter. 3Q19 completed and in process LBO volume totals over US$23bn as new money deals continue to be a driver of leveraged lending. Meanwhile, total debt to Ebitda levels on large corporate LBOs remain high, averaging 7.0x for so far this quarter, an increase over 2Q19’s 6.5x level.