2024 Mid-Year Credit Market Update

This technical report provides an analysis of the financing market conditions in the first half of 2024, highlighting significant improvements in credit spreads and increased lender risk appetite. It outlines the challenges faced in 2023, including a decline in US leveraged loan issuance and the impact of aggressive monetary policy tightening by the Federal Reserve. The report details the resurgence of the broadly syndicated loan (BSL) market, noting record-breaking activity in repricing, refinancing, and dividend recapitalization transactions. It presents statistics indicating a 135% increase in new leveraged loan issuance volume compared to the previous year and discusses the competitive dynamics between private credit and BSL markets. The report emphasizes the role of private credit in providing bespoke financing solutions, particularly for middle market borrowers, and notes the growing investor demand for private credit as a viable asset class. Overall, the document captures the evolving landscape of financing and the implications for borrowers and lenders alike.