PDF | Research |Week of Dec 5, 2022

Why Private Credit Now, Cont’d

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A veteran of leveraged lending and astute Lead Left reader disagreed with our statement last week that private credit terms have never been more investor-friendly. In a note to the editor he compared them to more conservative loan structures and legal protections in the 1990’s.

Since then, he pointed out, private equity owners and their legal teams have found innovative ways to weaken lender positions such as moving assets out of borrower entities and diminish rights acceleration. Not to mention the elimination of financial covenants.

Our reader has a good point. Having been at JP Morgan during that period, we had a ringside market-leader seat on how a slew of lender protections in credit agreements eroded over time. The technology and sophistication of broadly syndicated leveraged loans over the past three decades...

Leveraged loan all-in yields are seeing levels not present since the GFC.

There may be challenges around the corner, but the PDO 100 ranking of top capital raisers shows LPs have lost none of their appetite for private debt so far...

Returns for US leveraged loans and high-yield bonds were positive for a second consecutive month in November, with loan returns higher MoM to 1.24% and high-yield bonds returning 1.87%. Year-to-date returns stand at...

Contact: Hugo Pereira/ Refinitiv LPC

Globally, private debt fundraising is poised for a down year, according to PitchBook’s Global Private Market Fundraising Report. Through September, 105 private debt funds have closed, amassing $130 billion altogether...

The number and value of private debt deals in the US has fallen sharply this year. The number dropped from 149 in Q1 to 51 by Q4 YTD, with most of the drop in H2 2022. Aggregate deal value for US private debt deals...

Contact: Megan Harris / Preqin

Source: Creditflux, Debtwire Par

New CLO (collateralized loan obligation) issuance has held up well amid a backdrop of challenges in the leveraged loan market this year ranging from persistently high levels of inflation, to the ongoing war in Ukraine and...

Contact: Vincent Daigger / Debtwire