Leveraged Loan Buyers Demanding Better Terms

Bloomberg reported money managers are beginning to demand better rates and are avoiding riskier deals, as illustrated by a $1.475 billion loan for the buyout of chemicals company SI Group.

Moody’s Predicts Lower Recovery Rates Will Lead to Defaults

The Wall Street Journal reported that Moody’s has predicted increased demand for floating-rate leveraged loans has eroded credit quality and will lead to more defaults and lower recovery rates in an economic downturn.

U.S. Syndicate Lending at All-Time High Due to Mergers, Refis

Reuters reported that syndicated lending is peaking, partly due to lowered corporate taxes and a push to borrow before interest rates rise. The result is an upswing in mergers and company refinancings.

Leveraged Loan Market Suffering From Market Fatigue

Reuters reported 275 companies have turned to the leveraged loan market in the last three months, which has caused the $1 trillion market to suffer from market fatigue

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.