The US private corporate credit market has grown to more than $1.5tn (£1.2tn), according to a new survey from trade body the Loan Syndications and Trading Association (LSTA).
This valuation means that the private corporate credit market has now surpassed the size of the broadly syndicated loan market and the high yield market, which stand at $1.4tn each.
These three categories combined bring the US leveraged lending landscape to more than $4.3tn.
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“This data confirms what has been becoming abundantly clear – the use of private corporate credit is expanding, that it will continue to grow and that the relationship between private corporate credit and the syndicated market is enduring,” said Sean Griffin, chief executive of the LSTA.
“Private corporate credit, at its core, shares many similarities with syndicated lending, and provides US corporate borrowers increased access to the capital they need.
“The LSTA is fortunate to have many members that are active leaders in both markets. Our inaugural survey is foundational, providing a basis for comparison across the leveraged finance markets and increases insight and visibility into critical market features, like leverage.”
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“Like the broadly syndicated loan market, private corporate credit has grown and evolved since the global financial crisis, now reaching well beyond the boundaries of traditional middle market lending, offering corporate borrowers of all sizes increased access to credit on a consistent basis,” added Tess Virmani, executive vice president and head of policy at the LSTA.
“Private corporate credit has become an important pillar of the corporate lending ecosystem offering a dependable, mature financing alternative.
“There are gaps in the data available on the private corporate credit market that this report begins to fill.”
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