Credit Markets Update Q2 2024
Read more about the credit markets activity during Q2 2024

Credit Markets Update Q2 2024
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Opportunistic borrowers dominated the market during the second quarter of 2024 as the broadly syndicated market continued its recovery, sending spreads lower
- Second quarter new-issue leveraged loan volume reached $182.2 billion in 2024, over double the $79.5 billion in the same period in 2023, approaching the high-volume levels throughout 2021
- New-issue loan volume driven by: (i) refinancing activity as a result of lower spreads driven by the continuing recovery in the broadly syndicated loan market coupled with (ii) the rise of loan issuance backing private equity dividend recapitalizations
- Refinancing activity continued to be the main driver of volume in the second quarter with $94.3 billion printed, a strong increase from $31.1 billion during the same period last year
- Refinancing accounted for 65% of the institutional loan volume
- Extension and Repricing activity, which is not included in new-issue loan volume statistics, also reached a new high of $259.3 billion during the quarter
- M&A volumes remains subdued amid elevated cost of debt and held-up sponsor exit activity
High yield volume completed another strong quarter
- Second quarter volume of $76.4 billion increased from $53.0 billion during the same period in 2023, marking the 8th straight double-digit monthly total as issuers refinanced impending maturities during favorable market conditions
- The average yield at issuance slightly increased during the second quarter at 8.10%, as hawkish Fed rhetoric drove treasury rates up in June
The Federal Reserve maintained interest rate levels in June
- The Federal Reserve acknowledges modest progress in inflation, and remains cautious of prematurely reducing rates
- Continued geopolitical uncertainty, the upcoming U.S. election, and inflation data are expected to factor into future policy direction
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Credit Markets Update Q2 2024
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