Geopolitical tensions, a looming trade war, and frothy market levels combined to put investors on edge in February. The S&P 500 dropped 1.3% while U.S. high-yield bond returns fell to 0.67%, from 1.37% the previous month, according to the Bloomberg U.S. Corporate High Yield Index. In the broadly syndicated loan (BSL) market, total return shrank...
The new year brought a change to Washington with the inauguration of a new president intent on disrupting business as usual and investors attuned to the accompanying risk and opportunity. But in the loan market, however, it was more of the same: a technical imbalance with new loan supply falling short of high demand from...
The Federal Reserve cut interest rates in September for the first time this cycle, a watershed moment that had been anticipated for some time and a recalibration to monetary policy from fighting inflation to preserving economic growth. The impact of the Fed’s action to corporate credit was felt across the third quarter, when returns for...
Borrower-friendly market technicals have continued to characterize the first half of the year. Macro conditions, including higher-for-longer interest rates, geopolitical instability and a turbulent domestic election season have contributed to muted M&A activity.
With private loan market investors less versed in loans than those who invest in the broadly syndicated market, more and more operations professionals are needed to bridge the gap.
Direct lending has been among the fastest growing segments of leveraged finance, with AUM rivaling that of the broadly syndicated loan (BSL) and high-yield bond markets.
LSTA publications on the private corporate credit market, Analysis & Data
