United States

KPMG Capital Advisory Q1 2016 Credit Markets Update

May 01, 2016
From the Global Enterprise Institute and the Advisory Institute


Each quarter KPMG’s Capital Advisory practice provides an update of the U.S. credit markets. In this quarterly Credit Markets Update report, we provide a snapshot of credit market activity through March 31, 2016, and include insights into some of the key trends for the quarter. 

Highlights from the Q1 2016 Credit Markets Update:

  • Overall, some of the air has come out of the bubble in the credit markets over the last two quarters with decreases in LBOs, leveraged loans, junk bonds, second lien debt and LBO leverage; increases in the price of risk; and elevated levels of distress

  • Newly issued leveraged loan volume decreased to $86 million in the first quarter of 2016 from $94 million in the first quarter of 2015, but this represented an uptick from the anemic $74 billion issued in the fourth quarter of 2015

  • Distress indicators are elevated with roughly 13 percent by number and 10 percent by volume of all outstanding first lien loans trading in the secondary market priced at L+1000 or greater

  • Leveraged loans in default or in bankruptcy is at the highest level measured by par amount outstanding since 2009 and by percent of loans outstanding since 2010

For more details and analysis of Q1 2016 U.S. credit market activity, download the full Credit Markets Update >>