Attorney Authored

Market Intersection: A Quarterly Look at the U.S. Credit Markets 4Q22

February 27, 2023

The Finance Practice Group

4Q22 Trends Recap & What to Watch Out for in 2023

Direct Lending Continued to Outpace Syndicated Deals

In 4Q22, volatile market conditions persisted, including high inflation, rising interest rates, recession anxiety and geopolitical uncertainties. The impact of these conditions was reflected in decreased loan market activity, with total sponsored middle market loan volume (both syndicated lending and direct lending) depressed, down both from 3Q22 and year-over-year as compared to 4Q21. The decline in syndicated lending (as compared to direct lending) from prior periods was more pronounced, but direct lending was not fully insulated from the effects of market instability. Nonetheless, through year-end, private credit funds continued to increase their market share and injected more new capital into the market as compared to their syndicated lending counterparts.

Click here for a PDF of the full text

Practice Areas

Global Finance

Financial Services

For More Information

Image: John H. Cobb
John H. Cobb

Partner, Corporate Department

Image: Christopher G. Ross
Christopher G. Ross

Partner, Corporate Department

Image: Jordan M. Hook
Jordan M. Hook

Of Counsel, Corporate Department

Get In Touch With Us

Contact Us