PDF | Research |Week of June 13, 2022
July 12, 2022 | 09:00 – 17:00 | Etc Venues, New York
US Private Credit Forum

The flagship US middle market event from Creditflux returns in-person!
Quote of the Week
“I feel like I’ve been sat in the spin cycle of a washing machine.”
– John Dixon, high-yield bond trader, Dinosaur Financial Group.
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Why Portfolio Construction Matters
(First of a Series)
What makes for successful portfolio construction in private credit? That was one of the questions panelists addressed at the Private Credit Investor Summit last week.

The issue carries more urgency amid current public market turmoil. Equities tumbled this week after a worse-than-expected May CPI report. Besides the number itself (8.6%), highest in four decades, the breadth of inflation has made it clear lofty prices are here to stay for a while.

Leveraged loans will always be thrown into some kind of non-investment grade risk bucket. Middle market loans, being less leveraged and covenanted, are a more conservative play on the theme, but recessions will always test borrowers no matter how creditworthy...
Chart of the Week
“Been Down So Long…”
While the Fed may push rates up to 3%, that’s nowhere near historic highs.
Source: Natixis, Federal Reserve Board
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Stat of the Week
Loan Stats at a Glance 
PDI Picks
Business services: reliability amid volatility
‘Safe and steady’ is a tag that might be readily applied to the sector, and that’s just fine as far as investors are concerned...
Leveraged Loan Insight & Analysis
Lower rated credits post largest
declines in secondary market
Risk assets have come under renewed pressure in recent days as rising inflation has prompted expectations of a more aggressive monetary tightening by the Federal Reserve...
The Pulse of Private Equity
MM fundraising:
“Challenging but not impossible”
PitchBook’s latest US PE Middle Market Report is now out. Many of the overall deal trends mirror those of the broader PE market. One standout figure was early 2022 fundraising, which is off to a slow start...
Contact: Alex Lykken / PitchBook
Covenant Trends 
Percentage of Loans that Cleared
with the Least Protective
Documentation Scores (5/5+/4-) Monthly
High-Yield Bond Statistics
Weekly fund flows source: Lipper
DL Deals: News & Analysis
YTD: Private Leverage by Industry
Private Debt Intelligence
Direct lending funds closing above targets
Direct lending funds continue to attract investors, with the average percentage of target size at final close increasing dramatically from 108% in 2019 to 145% YTD 2022. However, the average time taken to raise a fund has also increased...
Contact: Megan Harris / Preqin 
Debtwire Middle-Market
High-yield bond primary issuance returns
in June after vanishing in May
Source: Markit, BofA US HY Index
As equity markets plunged into free-fall at the start of May, high-yield (HY) bond issuance came to a shuddering halt. The whirlwind of macroeconomic headwinds buffeting financial markets appeared set to remain, causing panic among investors...
Contact: Vincent Daigger / Debtwire 
June Update: Middle Market Deal Terms at a Glance
Select Deals in the Market
This publication is a service to our clients and friends. It is designed only to give general information on the market developments actually covered. It is not intended to be a comprehensive summary of recent developments or to suggest parameters for any prospective financing opportunity.