The credit markets have been dealing with rising distress lately, with Syndicated Loan prices dropping materially over the past six months. In fact, pricing today is at its lowest levels since the beginning of the Covid pandemic as represented by Solve’s real-time composite bid prices on approximately 2,000 USD and 550 EUR institutional term loans.
Average composite prices for USD denominated loans have dropped 6% this year, while EUR loans have decreased even more at a 9% decline. In the U.S. market, the industries facing the strongest headwinds this year have been Telecommunications, Consumer Goods: Durable and Construction & Building; these sectors have seen average composite prices drop an average of 9%. Virtually all industries have declined except for Oil & Gas during 2022.