Daily News: July 21, 2016

Fifth Street: H1/16 Middle Market Loan Volume Off 30% Y/Y

In its Q2/16 Capital Markets Outlook, Fifth Street Asset Management said the slight increase in sponsored loan volume forecasted in its last Capital Markets Outlook materialized this quarter, although the actual pick-up in activity was not commensurate with the recovery in the broader leveraged loan market.

Fifth Street noted middle market sponsored loan volume increased to $9.2 billion in the second quarter versus the depressed level in the first quarter of $7.9 billion. However, totaling just $17.1 billion, first half volume has declined 30% from the comparable period last year. Moreover, monthly sponsored issuance so far this year remains well below the $5.2 billion long-term average for the preceding five-year period from 2010 to 2015.