Direct Lenders Increasing Share of Middle Market Loans

Reuters reported direct lenders are expanding their role in underwriting working capital loans, threatening banks’ share of the middle market leveraged buyout space.

U.S. Leveraged Loan Market Heating Up, Prices Falling

Reuters reported the U.S. leveraged loan market has started 2018 with a high demand, allowing companies to reduce pricing on loans.

EMEA Lending Drops to $894B in 2017

Reuters reported that syndicated lending in Europe, the Middle East and Africa dropped in 2017 to its lowest volume level since 2012.

Deutsche Bank Pulling Back from U.S. Leverage Loan Lending

Reuters reported despite growth in the U.S. leveraged loan market has decided to Deutsche Bank has decided to reduce its participation.

Lenders Push Back to Stop Downward Spiral of Leverage Loan Pricing

Reuters reported lenders are starting to push back in an effort to stop the downward spiral of U.S. leveraged loan market pricing.

Reuters: U.S. Leveraged Loans Ready For Strong Second Half

Reuters reported year-to-date leveraged loan volume is $874.4 billion, and the market is on pace to set new volume records.

Reuters: Highly Leveraged U.S. Deals Still in Demand

Reuters reported that regulatory scrutiny hasn’t slowed banks and alternative lenders from underwriting highly leveraged U.S. loans, with one third of buyout loans in Q1/17 having leverage of more than 7.0 times.

Reuters: Alternative Lenders Gaining Ground

Reuters reported investor demand for leveraged loans is helping alternative lenders lead deals that traditional banks can’t provide.

Leveraged Loan Policies Gain Traction

Lenders reportedly scaled back on underwriting large debt-laden buyouts for low-rated companies in Q4/14, signaling that warnings to regulated banks against highly leveraged transactions are gaining traction.

Bloomberg: Fed Said to Warn Banks on Leveraged Loans

Bloomberg reported that Fed officials are warning banks that rising levels of high-risk, high-yield loans on their balance sheets may require more capital held against them.