1、USCredit Markets Quarterly Wrap 2US CREDIT MARKETS QUARTERLY WRAPFirst quarter,2025Leveraged loan market sentiment soured as Q1 progressed95.095.596.096.597.097.598.0Dec 2023Mar 2024Jun 2024Sep 2024Dec 2024Mar 2025Weighted average bid of US leveraged loansSources:PitchBook|LCD;Morningstar LSTA US LL

2、 Index Data through March 31,2025hobbling new-issue activity.$0$25$50$75$100$125$150$175$200$225Mar 2023Jul 2023Nov 2023Mar 2024Jul 2024Nov 2024Mar 2025US institutional loan activity($B)Non-refinancing issuanceExtension*RefinancingsRepricing*Source:PitchBook|LCD Data through March 31,2025*Reflects r

3、epricings and extensions done via an amendment process onlyThe cost of debt rose,especially for riskier borrowers150200250300350400450500B+BB-Spread(bps)over base rateNew-issue TLB spread by borrower ratingOct 2024Nov 2024Dec 2024Jan 2025Feb 2025Mar 2025Source:PitchBook|LCD Data through March 31,202

4、5.but volatility failed to slow CLO creation.020406080100120140$0$10$20$30$40$50$60$702Q181Q194Q193Q202Q211Q224Q223Q232Q241Q25US CLO issuance quarterlyVolume($B)CountSource:PitchBook|LCD Data through March 31,2025.and BSL lenders stole some of private credits thunder.$0$2$4$6$8$10$12$141Q232Q233Q234

5、Q231Q242Q243Q244Q241Q25Syndicated loans and direct lending takeouts($B)DL refinanced by BSLBSL refinanced by DLSource:PitchBook|LCD Data through March 31,2025Note:historical data is subject to change as LCD collects more informationAn expected increase in direct lending did not materialize.040801201

6、60200$0$12$24$36$48$601Q203Q201Q213Q211Q223Q221Q233Q231Q243Q241Q25Estimated volumeCountSource:PitchBook|LCD Data through March 31,2025 Direct lending analysis is based on transactions covered by LCD NewsDirect lending count and estimated volume,PE-backed borrowers($B)3 Leveraged loan market cools af