Primary leveraged yields decline slightly in 3Q19
Primary yields have tightened slightly across rating levels so far in 3Q19. The main driver behind the decline in yields are falling Libor rates. At its current level of 2.13%, the 3-month Libor rate has dropped 19bp from 2.32% at the end of 2Q19. For single B issuers, the average yield, assuming a three-year term to repayment on first-lien institutional term loans is 6.89%, 16bp below their 2Q19 level.