Culver Capital Investment Banking

Another Strong Year Expected for U.S. Leveraged Loans

08 February 2011

Outlook positive after big comeback in 2010

NORWALK, CT — This year is expected to be another strong one for leveraged loans, said Sage Nakamura, managing director of loan syndications with GE Capital Markets, Inc. GE Capital, Americas is a leading provider of commercial loans and leases to mid-market businesses across diverse industries throughout the U.S., Canada and Mexico.

Nakamura characterized 2010 as “a comeback year for leveraged loans,” with volume of $233 billion – a 205% increase over 2009. “As the economy rebounded and loan defaults eased, liquidity flowed back into the loan market and investors, including GE Capital, were eager to lend,” he said.

“The surge in investor demand for these types of loans that began at mid-year last year is still picking up speed in early 2011,” he later noted. “Already, we are seeing tighter pricing on transactions, and yield compression should continue throughout the year.”

Posted in: General Market Articles on February 9th by bweaver