In 3Q23, US unitranche blended spreads declined for the second straight quarter. The average unitranche blended spread, including both middle market and large corporate deals, was 625bp in 3Q23, 29bp lower than 2Q23’s average. This aligned with Refinitiv LPC’s 4Q23 Lender Outlook Survey where 44% of respondents listed 600-625bp as the minimum spread threshold for unitranches, an increase over 3Q23’s Lender Outlook Survey’s 35% of respondents who listed that range as the preferred minimum. Unitranche spreads reached a recent high of 689bp in 1Q23.
(Past performance is no guarantee of future results.)
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Private Credit Defaults 101: Back to School
As Labor Day approaches, the unofficial end of summer is upon us. But, before we get too sad, there is also the familiar back-to-school energy.