Apr 12, 2013
From the Global Enterprise Institute
Our Capital Advisory practice is pleased to announce its Q1 2013 Credit Markets Quarterly Update. It provides a snapshot of Q1 2013 credit market activity, including a general overview, trends, pricing and structures.
Key insights from the Q1 2013 newsletter include:
- New-issue loan volume reached a post-credit crunch high of $185.2 billion in Q1 2013, a 35-percent increase from the $136.0 billion new-issue volume posted during Q4 2012 and a 61-percent increase from the Q1 2012, when new-issue volume reached $115.1 billion
- Massive liquidity injections from Collateralized Loan Obligations (CLOs) and mutual funds sent yields markedly lower in the first quarter, reducing pricing and making loan terms more attractive. This set off a wave of opportunistic refinancing, largely by institutions
- Dividend recaps remain active as private equity firms monetize gains and provide distributions to their limited partners amid the slow pace of IPO exits and sponsor-to-sponsor deals