PDF | Research |Week of Sep 12, 2022

September 22, 2022 | 8 AM – 7 PM EST | NY Hilton
2022 Annual Conference
Reassessing Risk, Reshaping Market
Register Now
Quote of the Week

Borrowers are particularly vulnerable to the double

whammy of weaker earnings and rising interest rates.

– Srikanth Sankaran, head of US and European credit, Morgan Stanley.

Lead Left Vodcast

Private Credit:

A League of Its Own

🔔 Subscribe to our YouTube channel: click here

Watch Now

Private Credit in an Age of Scarcity

(First of a Series)

rise image

Our keynote address at this week’s SuperReturn US Private Credit conference allowed us to share a reconsideration of the impact of rate hikes and quantitative tightening on capital markets and private credit. This special series will further develop that thesis.

For over a decade, including through Covid, the tide of capital has flowed mostly in one direction: into markets. That’s because since the Great Recession the Fed has kept interest rates low. Public credit, both loans and bonds, benefited from this support.

Private capital, particularly credit, has also enjoyed a one-way stream. With interest rates low, investors sought higher yielding investments while still retaining low risk. Private equity sponsors obliged by working closely with their relationship direct lenders to put their own LP money to work with a burgeoning pipeline of buyout financings...

Visit our Website

Chart of the Week


High-yield issuance down to a crawl amid Fed’s rate uplift and recession fears.

Sept-12-2022-CTW-1024x691 image

Source: Leveraged Commentary & Data (LCD)

Lead with Your Left


Join the leading voice of the middle market. Try us free for 30 days.
Learn More

Stat of the Week

Sept-12-2022-Stat image

Loan Stats at a Glance 

Sept-12-2022-SP image

PDI Picks

Ups and downs in the US

Sept-12-2022-PDI-1536x1054 image

Some of the key talking points from our recent roundtable...

Read More

Leveraged Loan Insight & Analysis

BDC share price-to-book value

remains above recent lows

Sept-12-2022-RF-1536x1057 image

BDC share price-to-book values have bounced around recently, impacted by shifting investor sentiment. The average share price-to-book value is at 0.91x as of September 9, down from 0.95x in mid-August but is still up from a recent low of 0.80x in June...

Read More

Contact: CJ Doherty / Refinitiv LPC

The Pulse of Private Equity

Dealmaking steady, fundraising slows

Sept-12-2022-PitchBook-1536x1059 image

PitchBook’s Q2 2022 US PE Middle Market Report is now available. All things considered, dealmaking was stout in H1. Over 1,600 transactions were finished, with $228.2 billion invested in the process. Both figures are strong relative to prior years, except 2021...

Download Report
Contact: Alex Lykken / PitchBook

Covenant Trends 

Percentage of First-Lien Loans Clearing

with Key Covenant Terms by Quarter

Sept-12-2022-CR-1536x1098 image
Download Data

Contact: Steven Miller / Covenant Review

High-Yield Bond Statistics

Sept-12-2022-Levfin-1-1536x1054 image
Sept-12-2022-Levfin-2-1536x1052 image
Sept-12-2022-Levfin-3-1536x1055 image
Weekly fund flows source: Lipper
Download Data

Private Debt Intelligence

Private debt cements place in

European investor portfolios

Sept-12-2022-Preqin-1536x991 image

Actual allocations to private debt have moved closer to their targets in European investor portfolios since Q2 2015, reducing the gap from 3.6% of AUM to just 1.7% in 2022, with actual allocations standing at 3.3% against a target of 5.0%...

Download Data

Contact: Valerie Kor / Preqin 

Debtwire Middle-Market

Sept-12-2022-Debtwire-1536x1018 image

Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield

Download Data

Contact: Hema Oza / Debtwire 

September Update: Middle Market Deal Terms at a Glance

Sept-2022-SPP image

Select Deals in the Market

Sept-12-2022-deals-1536x583 image
Twitter  Linkedin  Youtube  

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.