How grim was the US #leveragedloan market in May? The 2.56% loss was the third-worst month since the financial crisis and the ninth-worst ever (in the market's 25-year history). Highlighting the recent market: uncharacteristic volatility

A rare bankruptcy raises the U.S. #leveragedloan default rate to a still-microscopic 0.21% in May, miles from the historical average of 2.77%. With near-term debt maturities scarce, investors are focusing more on downgrades than defaults: buff.ly/3m5P5oY Rachelle Kakouris

Assets under management at US #leveragedloan funds (mutual funds and ETFs) dropped by nearly $10B in June, one of the steepest declines ever, as #inflation / #recession fears far outweigh further rate-hike support this floating rate segment might see #highyield #economy

With focus on quality over risk in a volatile 1H21, second-lien #leveragedloans - which are repaid after their 1st-lien cousins - lagged during the July market rebound. Some 85% of outstanding Index loans have a C-handle rating (CCC/CC/C) or are unrated Rachelle Kakouris

With Cineworld's Chapter 11 filing the US #leveragedloan default rate rises to 0.86%, from 0.60% at month-end. With $3.5B in outstanding bank debt Cineworld is the largest loan defaulter since #energy concern McDermott (2018) buff.ly/3BoH9rv #bankruptcy

Thank you Ma’am, for everything.

The riskiest US #leveragedloan issuers (B-minus) now account for the largest share of the $1.425 trillion asset class, the first time that's ever been the case. Full analysis: buff.ly/3BK9b0P Rachelle Kakouris #highyield

The face value of outstanding US #highyield bonds at distressed levels crept higher this week, and is nearing $100B (that's well down from June but way up from the start of 2022). More: buff.ly/3DEf40y

Bond issuers braving the #highyield market gauntlet in October are facing the steepest yields - averaging 12.25% - since 2009, with some deals hitting 15%. This might be the case until the Fed changes its stance, analysts say buff.ly/3EPoqHD #leveragedloan

Next LCD webinar on 10/26: #leveragedloan market analysis including deep dive into LBOs/PE, plus investor demand (CLOs), distress levels, survey results and a look at soaring yields/plunging demand in #highyield buff.ly/3F0fRde

The US #leveragedloan asset class is down 2.34% YTD, on track for its worst performance since 2008, though that's well ahead of other asset classes. #highyield bonds are down 14.13% YTD, investment grade is down 18.31% and equities are down ~23%

Those riskier, lower-rated #leveragedloans that sit just atop the triple-C ratings tier, amid today's downgrade-heavy debt markets? They're of particular interest to #PrivateEquity shops, whose companies have issued most of them buff.ly/3T0W8NT

In cases of default, not all #leveragedloan and #highyield bond recoveries are created equal. LCD details what industries have fared best/worst, as well as other factors impacting recoveries buff.ly/3GmekPj Rachelle Kakouris

Just how much LBO market share did private credit providers gain, vs traditional/bank-led syndicated loan providers? In 2022's 4Q, pretty much all of it. Also: roster of 2H PE-led take-privates, courtesy PitchBook buff.ly/3WbwyYo #leveragedloan Abby Latour

Much focus on US #leveragedloan defaults in 2023. But how bad would things need to get before the market hits levels of crises past? Pretty bad. There was < $10B in defaults in 2022 (another light year, admittedly), well short of the $49B in 2020, after covid onset PitchBook

NEW: Angelo, Gordon finds itself on opposite sides of respective Revlon and Serta Simmons ch 11 cases. My look at their subtle argument that the Serta “uptier exchange”is legally distinct from the Revlon “dropdown”: on.ft.com/3S02YEk

Thinning interest coverage: How might big LBOs that were structured before the rate hikes - and often with rosy predictions of performance - be faring in today’s unforgiving market, now that their cost of servicing debt has skyrocketed? buff.ly/42jGB04 #leveragedloan

Four Morningstar LSTA #leveragedloan defaults already in June (Diebold Nixdorf, GenesisCare, Lucky Bucks, Cyxtera), bringing the rate to 1.71%. That's the highest in more than 2 years. This follows what was a busy month for defaults in May: pitchbook.com/news/articles/… Rachelle Kakouris

Private credit has been riding high through much of the recent cycle. But as rates rise and borrower coverage ratios slide, the segment is increasingly focused on potential distress and defaults buff.ly/3p8UkcP #leveragedloan PitchBook

Credit Crunch? Not exactly, though parts of today's #leveragedloan market are plumbing depths not seen since the 2007-08 Global Financial Crisis. Full analysis: buff.ly/3pgDdpg #highyield PitchBook Rachelle Kakouris