U.S. Loan Market Survey
Syndicated leveraged loans dominate the U.S. non-investment grade credit market, and the market is larger than ever in size but also more diversely held across lending groups, with institutional investors (i.e., non-bank participants) now accounting for approximately one-half of all leveraged loans outstanding and collateralized loan obligations (CLOs) holding about one-half of all institutional loan tranches.
Furthermore, private credit platforms and business development companies (BDCs) have bulked up their share of middle-market lending.
At $1.2 trillion, the U.S. institutional loan market recently surpassed the high-yield bond market in size.
Our lender survey reflects today’s lending market diversity, with 70 of 104 respondents (67%) working at bank lenders and 34 respondents (33%) working at non-bank lenders, including private credit, CLOs and BDCs.