Leveraged loan issuance continues at a healthy clip even as institutional investors, weary from a seemingly endless stream of issuer-friendly deals, lock arms, sending more would-be loans back to the drawing board.
Indeed, the list of withdrawn loan transactions soared to 14 this week. One measure of the market’s resistance: new-issue yields for single-B transactions increased this week for the first time in 2013.
New-money deals remain a bright spot, however, amid the continuing press of investor cash that needs to be put to work. Upsizing and reverse-flex activity (where pricing on a loan is increased during syndication) bucked the prevalent trends on the repricing front.