The Haves and Have-Nots in Leveraged Loans
Issuers in leveraged lending today are divided into three categories: the haves, the have-nots, and the wish-they-hads.
With about six weeks of business left to the year, the differences between haves and have-nots is growing.
In the #BroadlySyndicatedMarket, the combination of triple-C anxiety among CLO managers and cash out-flow worries with retail funds have impelled a flight-to-quality. Better rated issuers in defensive sectors are sailing through, while “story” credits are only getting sold with investor-friendly changes…
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Share of PE middle-market deal count by backing type
Add-ons remain the workhorse for middle-market deployment, accounting for 67. 1% of all middle-market transactions YTD, in line with activity seen in recent years.
Software deal share falls in middle markets, rises in large caps
In Q3’26 software’s share of total deals fell in both the Lower Middle Market (to 7%) and Upper Middle Market (to 9%), while Large Cap saw a modest uptick in share to 8%.
Secondary loan prices stabilize following steep declines
Secondary loan prices came under significant pressure through September and October, with the Bloomberg U.S. Leveraged Loan Index declining 119…