The U.S. leveraged loan market is rebounding, both in volume and investor tone, as aggressively structured transactions, downward flexes in proposed interest rates and covenant-lite loans return to the scene (though investors remain cautious on some transactions).
As for the deals, activity for the week totaled roughly $10 billion, nearly matching the $11 billion seen last week. Both totals are up noticeably from the scant volume of the previous two weeks (one of which was holiday-shortened).
As telling as the numbers, however, is what’s happening to deals already in the loan syndications market. This week, no fewer than seven issuers tightened interest rates on deals currently under consideration by investors, according to LCD’s Chris Donnelly.
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