Middle Market & Private Credit – 4/13/2026
Fitch Ratings’ point‑in‑time credit opinion model shows U.S. software issuers are markedly more exposed to credit deterioration when EBITDA is stressed severely. In the same stress test, the broader U.S. middle‑market collateralized loan obligation (CLO) portfolio exhibits little rating migration, indicating resilience. The contrast highlights sector‑specific vulnerability versus structural robustness in the middle‑market loan market. Investors should note the divergent outcomes when assessing credit risk under adverse earnings scenarios.
The Pulse of Private Equity – 4/13/2026
The latest Pulse of Private Equity chart shows software’s share of private‑equity deal value climbing to roughly 35% of total allocations by Q1 2026, while the HALO category has slipped below the 10% mark. Notable mega‑deals—Twitter/X at $44 B in Q2 2022, Electronic...
Leveraged Loan Insight & Analysis – 4/13/2026
Unitranche loan issuance in the United States slumped sharply in the first quarter of 2026, affecting both large‑corporate and middle‑market segments. The total volume, which typically oscillates between $40 billion and $80 billion, contracted markedly amid heightened concerns about AI‑driven disintermediation and...
Covenant Trends – 4/13/2026
Covenant Trends released its weekly snapshot of first‑lien institutional loan market conditions on April 13, 2026. The data show average new‑issue clearing spreads for Single‑B rated loans narrowing to roughly 165 basis points, a 5‑bp improvement from the prior week....
The OG of Private Credit: You Are What You Eat
The article argues that in private credit, the quality of deal sourcing determines portfolio outcomes. It traces the asset class back to the core middle market, where lenders focused on SME loans backed by private‑equity sponsors with conservative terms. As...
Chart of the Week: Ex Uno, Plures
The Lead Left’s chart illustrates how private credit in the United States has transformed from a monolithic middle‑market sponsor‑lending niche into a sprawling ecosystem of financing solutions. Over the past decade, assets under management have ballooned from roughly $200 billion to...
Bloomberg: Leveraged Lending Insights – 4/6/2026
Lenders are deepening original issue discounts (OIDs) to clear leveraged‑loan deals as primary‑market activity stalls. In March 2026 the weighted‑average OID on U.S. institutional loans surged to 140 basis points, up from 62 bps in February, marking the deepest discount...
PDI Picks – 4/6/2026
Secondaries activity is booming across private debt, equity, and real assets, according to the 2026 Global Market Survey from Secondaries Investor, a Private Debt Investor affiliate. The study highlights a rapid rise in GP‑led secondary transactions, driven by GPs seeking...
Leveraged Loan Insight & Analysis – 4/6/2026
Leveraged‑buyout (LBO) leverage multiples in the United States remained largely unchanged in the first quarter of 2026, easing marginally to an average of 5.5 times EBITDA compared with 5.6 times in the fourth quarter of 2025. The modest decline reflects...
The Pulse of Private Equity – 4/6/2026
U.S. private equity firms now hold a record‑high portfolio of more than 13,143 companies as of the fourth quarter of 2025. The average age of these holdings has fallen to roughly 8.1 years, signaling a quicker turnover than earlier in the...
KBRA Direct Lending Deals: News & Analysis – 4/6/2026
Kroll Bond Rating Agency (KBRA) released its latest Direct Lending Default (DLD) indices covering the trailing twelve months through April 7, 2026. The data show the aggregate default rate climbing to roughly 2.1%, a modest increase from the prior quarter. The rise...
Octus: Private Credit & Deal Origination Insights – 4/6/2026
Octus’s latest private‑credit briefing highlights a surge in payment‑in‑kind (PIK) loans among software‑industry borrowers, especially those set to mature through 2028. The data show that a sizable share of these loans carry PIK interest, even as they approach near‑term repayment...
Debtwire Middle-Market – 4/6/2026
In February, high‑yield bond issuance topped institutional leveraged‑loan issuance for the first time in recent months. HY bonds reached $29.7 bn, slightly above the $28.6 bn of leveraged loans, according to Debtwire. The shift reflects investors' appetite for higher‑yield debt amid tightening...
The OG of Private Credit: (Smaller) Size Matters
The article examines how the post‑GFC zero‑interest environment let large private‑equity firms and direct lenders over‑leverage mega‑software acquisitions with borrower‑friendly terms. As the Secured Overnight Financing Rate (SOFR) climbed to roughly 5% in 2022, financing costs surged, turning those generous...
Chart of the Week: Different Strokes
The latest chart from The Lead Left shows that the overlap between core (large‑cap) and lower‑middle‑market (LMM) investment portfolios has remained remarkably steady over the past ten years. The data, sourced from company filings and Raymond James research, indicates that...
