The Current State of Leveraged Loans in the Middle Market

Many aspects of the leveraged loan market have not played out as industry observers predicted at the beginning of the pandemic. What is the current state of leveraged loans in the middle market? How does the past quarter compare to pre-pandemic conditions? What shifts have taken place in the past quarter? What factors are most influencing credit facilities? To gain a pulse on these questions and others, SRS Acquiom recently polled direct lenders, investment bankers, advisors, and attorneys on what they are seeing in the middle market today. Conducted August 3 through August 19, this research reveals the state of the lending market, fresh challenges to the extension of credit facilities, and impacts to credit strategies.

Questions posed to our participants included:

1. Describe the state of the market?

2. Do you still consider it to be a borrower’s market if the credit or borrower is distressed?

3. How does the market of the past quarter compare to Q1 2020 (pre-COVID-19)?

4. What factors most influence your credit facility?

5. Relative to the last quarter, are you experiencing significant variation on the following credit agreement terms?

6. In monitoring your credit facilities, which, if any, of the following do you find challenging?

7. Which factors will affect your post-pandemic economic credit strategies?

To see the complete survey results, download the report above.