Calling the death of public markets was premature. This time last year, much was (rightly) written about the depth and ability of direct lenders to bridge a financing gap into dislocated markets. Column inches announcing the death of public markets and highlighting the wall of private capital available and ready to deploy. Fast forward to today and we see that both Leveraged Loan and High Yield markets have been firmly in the spotlight with a large volume of issuance across a diversified breadth of issuers (see charts below) that is giving us opportunities to selectively deploy capital. Perhaps more than anything else, the past year has proven the importance of each constituent in the evermore overlapping Venn diagram of loans, high yield and direct lending. And they say a year is a long time in politics. #Schroders #LeveragedFinance #HighYield #Loans
Simon Hood
2mo
Plus ca change plus c, est la meme chose. Only larger more liquid markets and a broader universe of investors
Matt Dickinson
2mo
Looks like a 'golden age' for lev loans..
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2moIs it the tail wagging the dog as CLOs go past reinvestment? Return expectations for direct lending are going to suffer, if more unitranches print below 500bps