TSL Express Daily News
The Secured Lender
SFNet's The 81st Annual Convention Issue
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Top 5 Apps for Organizing
Mar 7, 2019If you’re like most of us, we try to stay organized in business and life, but it gets increasingly complicated…
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The Importance of Stretching
Mar 7, 2019Every personal trainer and athletic coach I have ever worked with has stressed the importance of stretching. When working out…
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SFNet's 40 Under 40 Award Winners Panel Recap
Mar 6, 2019Moderator: Samantha Alexander, regional underwriting manager, Wells Fargo Capital Finance’s Corporate Asset Based Lending group and 2016 CFA 40 Under…
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SFNet's Inaugural YoPro Leadership Summit
Mar 6, 2019The Secured Finance Network brought together the next generation of commercial finance leaders for a full day of learning and…
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It’s a Marathon, Not a Sprint
Aug 22, 2018I was recently invited to participate in an executive panel to answer questions from a credit training class comprised of...
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It’s Not Too Late – Five Member Benefits to Cash In On Now
Aug 1, 2018As we hit the half way mark on calendar year 2018, it is a good time to take stock and…
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It’s Time To Break Up With Your Phone
Jul 18, 2018Do I have your attention? Let’s be honest here: do you have the attention span to read this article? Compared…
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Lien Management – What You Need to Know
Jun 6, 2018UCC filing is the cornerstone of all loans and every lien portfolio...
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Potential Impacts of Blockchain on Commercial Lending
Jan 15, 2018By Raja Sengupta, Executive Vice President and General Manager, Wolters Kluwer’s Lien Solutions When it comes to the rising importance…
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How to be a Good Leader
Dec 5, 2017I know what you’re thinking…another article about how to be a good leader? The short answer is yes…but this time,…
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Fintech and Due Diligence – Disruptors and Established Firms Evolve
Oct 30, 2017The fintech sector has gone through a number of manifestations in the past two decades.
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A Commercial Banker’s Tickler Transition Plan
Oct 18, 2017Just do a keyword search for “bank tickler,” and you’ll quickly realize that banks are still heavily reliant on manual…
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Understanding and Developing Your Personal Brand: Four Steps to a More Intentional Career Progression
Sep 5, 2017It is imperative for individuals to have a general idea about their future career aspirations, just as companies should have clearly defined strategies.
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Selecting a Technology Vendor: 3 Questions to Ask
Jul 5, 2017As with anything else at your bank, selecting a technology vendor can be a challenging decision. Users from across different…
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Why Back-Office Lending Automation Enhances Customer Satisfaction
Apr 25, 2017Every bank strives to keep its customers happy. Of course, some institutions are better at achieving this goal than…
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The Lost Art of the Loan Purchase
Mar 2, 2017Purchasing a loan directly from a bank whether at par or discount is a not-often-used technique that is easily…
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Audit Prep: Why a Paperless Approach Makes Sense
Feb 15, 2017How much time does your financial institution spend preparing for audits? We recently surveyed 187 community banks, and the results…
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Back Office Support Services: Helping you approve more clients
Feb 7, 2017How many times have you come across a potential client who’s financials are either not up to date, not accurate,…
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“All Assets” is the Key When Drafting UCC-1 Financing Statement Collateral Descriptions
Jan 30, 2017Even when prepared by outside or in-house counsel, many lenders pay close attention to draft UCC financing statements before they…
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Paper Loan Files: Does Your Bank Know the True Cost?
Jan 12, 2017Sure, there’s a tangible cost associated with deploying an electronic loan imaging system. Software, support, and scanning hardware are just…
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March 24, 2021
Source: Fitch Ratings
The March trailing 12-month institutional leveraged loan default rate stands at 3.9%, according to a new Fitch Ratings report.
"The current 2021 forecast is 4.5%, but if market access remains as open and issuer-friendly as it has been, the rate will probably finish even lower," said Eric Rosenthal Senior Director of Leveraged Finance.
There have been zero defaults this month, which has not happened since August 2018. Year-to-date volume tallies just $3.3 billion, down 71% compared to March last year, with nearly half the volume from Belk.
The retail default rate is projected to end the year at roughly 15%, but that could come in closer to 10% in the current refinancing environment. This sector has the most issuers on the Top Market Concern Loans list, with the vast majority being large middle market companies.
The forecasted year-end energy rate is 8% based on defaults impacting smaller issuers compared with last year. Crude oil prices reaching $65 per barrel has also helped the sector.
Fitch's Top Market Concern Loans total $38.6 billion, well off the $69.4 billion April 2020 peak. This is the lowest tally since July 2019. The total outstanding on Fitch's Tier 2 Market Concern Loans decreased too, reflecting improvements/refinancings/acquisitions. The combined Top and Tier 2 Market Concern Loans amount fell for the 11th straight month and is off 20% from the April 2020 high.
February saw a record gross issuance of $121 billion. Issuers continue to refinance their existing loans, with around 70% of the gross issuance being repricing/refinancing/maturity extension transactions.
In April, Fitch will begin publishing the U.S. Leveraged Finance Market Insight report, which will have market statistics previously published in the U.S. High Yield and U.S. Leveraged Loan Default Insight reports. In addition, Fitch has changed the nomenclature of the previously known as the Top Loans of Concern and the Tier 2 Loans of Concern. This will now be referred to as the Top Market Concern Loans and Tier 2 Market Concern Loans.
The full report titled "U.S. Leveraged Loan Default Insight Report: TTM Default Rate Falls Below 4%, Lowest Level Since June 2020" is available at www.fitchratings.com.
Contact:
Eric Rosenthal
Senior Director
Leveraged Finance
+1-212-908-0286
Fitch Ratings, Inc.
33 Whitehall St.
New York, NY 10004
Brendan Hoelmer
Associate Director
+1-646-582-4781
Media Relations: Elizabeth Fogerty, New York, Tel: +1 212 908 0526, Email: elizabeth.fogerty@thefitchgroup.com
