Syndicated middle market issuance picked up in 2Q22 despite increased market volatility in May and June. Middle market lending climbed to US$48bn in 2Q22 from US$33bn in 1Q22 but was below the US$58bn posted in the same quarter last year. On a year-to-date basis, issuance amounted to US$80bn in 1H22, just 7% below the volume posted in 1H21. In the non-sponsored side of the middle market, lending bounced back in 2Q22 (US$34bn) outpacing 1Q22 (US$25bn) and getting close to the 2Q21 level (US$37bn). On a positive note, new money volume in this segment totaled US$15.8bn in 2Q22, topping both the prior quarter (US$12.6bn) and the corresponding quarter last year (US$14.9bn). Oil & gas (US$6.1bn), on the back of high energy prices, easily led non-sponsored lending in 2Q22, posting more than double the volume seen in the wholesale (US$2.8bn) and technology (US$2.2bn) sectors. On the sponsored side, syndicated middle market lending in the most recent quarter totaled US$13.9bn, topping 1Q22 volume of US$8.3bn but was 34% below the same period last year.
(Past performance is no guarantee of future results.)
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.