From Q1-Q3 of 2023, the U.S. loan market underwent notable changes, marked by distinct deal patterns and uneven market activity (Paul Hastings LLP).
For much of the period, the majority of deals were portfolio work. This included a mix of amend-and-extend transactions and notable covenant relief amendments. Moreover, LIBOR transition amendments became increasingly prevalent, signaling changes in the broader lending landscape.
In terms of new issuances, private credit deals have forayed ahead, consistently outpacing their syndicated counterparts. This trend continued to gain ground over the period and became more pronounced especially towards the third quarter. Along with this, recurring revenue financings increased both in frequency and size, thereby adding a new dimension to the lending market dynamics.
What’s notable here are these shifts in the loan market through the first three quarters of 2023, both in terms of the types of deals and the overall market activity. Determining the implications of these trends, however, will require ongoing observation and analysis in the coming months.
For a more in-depth update and detailed breakdown, visit Paul Hastings LLP. They’re providing in-depth coverage of these trends and much more.