BDO Capital Q3 2022 Debt Market Update

Total U.S. leveraged lending during the first half of 2022 has experienced heightened volatility given global economic uncertainty, continued inflationary pressures and greater geopolitical risk. According to Debtwire, total leveraged loan volume declined 23 percent compared to the prior year to approximately $612 billion and institutional leveraged loan volume declined 62 percent compared to the prior year period to approximately $200 billion. Institutional refinancing and repricing volume was hit particularly hard as the Federal Reserve ended its stimulus programs and rising interest rates created significant market uncertainty. Instead, borrowers utilized revolvers and asset backed facilities which helped to offset some of the institutional loan volume decline.