LPC - Lending Lowdown Series LSEG (London Stock Exchange Group)

The huge growth in AI applications and data consumption is driving the need for financing of digital assets. Host CJ Doherty sits down with IFR Senior Reporter Richard Leong to discuss the demand for financing in this asset class. "Private credit and insurers are stepping in to provide longer term capital to fund this tremendous amount of money needed," said Leong. "For the capital markets...just increasing use of securitization to term out loans for these players.

Host CJ Doherty sits down with David Brooks and Alice Cavalier, Partners & Co-Heads of Capital Solutions at Arcmont Asset Management, to discuss capital solutions lending and the outlook for the rest of 2024. "Loans have been up about 250% year to date and accounting for about 60% of the market as of last week and bond issuance has increased as well significantly," said Cavalier. "People are busy, more bullish on M&A."

Host CJ Doherty sits down with John Wright, Global Head of Credit at Bain Capital Credit, to discuss current conditions in the US CLO market and what’s ahead in the remainder of 2024. "Coming into this year, we're seeing much greater interest and much greater willingness on behalf of the banks to underwrite loans," said Wright. "That's driven by strength in the secondary market and the new issue market for leveraged loans."

David Puchowski, Director of Analysis at LSEG LPC joins CJ Doherty to discuss the key trends that shaped the direct lending market in 2023 and preview what is in store for 2024. "59% of total US LBO loan volume was done in the direct lending market," said Puchowski. "That was the first time that direct took the majority over the syndicated market."

Noelle Sisco, Managing Director and Portfolio Strategist at Napier Park joins CJ Doherty to discuss the outlook for the structured credit market as we head into 2024. “The big question mark for the U.S. consumer will be the trajectory of unemployment,” said Sisco. “Going forward into 2024, on the corporate side, we expect to see a continuation of elevated defaults with lower than historical recovery levels as we saw in 2023.”

Host CJ Doherty and Dan Lee, partner at Comvest Credit Partners, discuss the current lending landscape in the US lower middle market. “The lower middle market generally has held up, volumes have been more steady,” Lee said. “The trends in the lower middle market…tend to follow the larger market but to be not quite as volatile.”
Check out Lending Lowdown episode 18 wherever you get your podcasts.