Pricing deals in Private Credit
Can someone provide thoughts on how private debt deals are priced? LCDComps has been mentioned before. But that only provides YTM and Leverage metrics for bonds and leveraged loans. What data on LCDComps is used to figure out pricing for private debt?
-
If you have access to TheLeadLeft, they typically track average deal margins in their weekly report.
But yea, private debt is much more difficult to just index given all of the nuances (deal sizes, OIDs).
i'm at an opportunistic credit shop at a BB, and one benefit of having an in-house DL platform is being able to leverage the teams that prices paper on a daily basis - the syndicate desks and risk teams all have models based on certain risk/return inputs that we use then use to negotiate floors/flex on term sheets with sponsors and what not.
Given the inherent nature of private / direct deals that aren't broadly syndicated loans, there is less visibility into this market on the pricing side (e.g., there is less liquidity on the name, the paper doesn't actively trade, there are typically
Laudantium quia accusantium optio debitis sed nam incidunt. Incidunt sit maiores repudiandae aperiam.
A neque rem autem tempore sit est. Voluptatem exercitationem illum quia ad unde. Nihil vitae ab nobis omnis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...