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Loan investor trends: Non-bank participation hits record high in 3Q

Fed rally & default fears bring bifurcation back to leveraged loans

Loan Downgrades Are the Biggest Concern for the European CLO Market

Industry-Specific Losses Stand Out In Leveraged Loan Market As COVID-19, Oil Fears Globalize

Europe’s Leveraged Loan Issuers Draw on Revolving Credits to Preserve Liquidity


Loan investor trends: Non-bank participation hits record high in 3Q

In the third quarter, non-bank investors in leveraged loans – fund managers, finance companies, and insurers – enlarged their slice of the new-issue pie to a record 87%, from 83% in the first half.

CLO managers, flush with cash from new issuance, enjoyed the biggest share increase. Arrangers note that those gains were limited, however, because loan demand was up across all investor constituencies: banks, structured-finance vehicles, retail investors, institutional accounts, and relative-value players.

This analysis is taken from a longer complete LCD News story. Also in the analysis:

  • Quarterly returns
  • CLO volume by year
  • CLO share of primary institutional market for highly leveraged loans
  • Average yield to maturity for leveraged loans
  • New-issue YTM for issuers rated B-/B3 or lower
  • Relative-value players’ share of primary institutional market for highly leveraged loans
  • Inflows/outflows for loan mutual funds
  • Prime-fund outstandings and percent
  • Split-rated BB/B (or higher) loans as a share of total volume
  • TLA share of funded term loans
  • Number of loan investor groups
  • Primary institutional group (loans of $500M or more)
  • Number of fund managers that issued a CLO
  • Spreads and funding costs for CLOs
  • Average new-issue yield to maturity for leveraged loans
  • Total net asset value of prime funds
  • Repricings
  • High-yield takeouts
  • Average bid of LCD’s flow-name composite


Steve Miller