Houlihan Lokey’s latest insights and analyses from the firm’s Private Credit DataBank were covered in the latest issue of PEI Private Credit, quoting Managing Directors Chris Cessna and Timothy Kang. Mr. Kang noted that, “The quantum of debt service payment—the interest burden in dollars—is going up, with the smaller and middle-market borrowers being hit by other headwinds,” while Mr. Cessna noted that “We’re seeing a disproportionate share of underperformance in loans to smaller companies,” with loans pricing at 90% or 80% of face value, serving as a “good proxy for stress and distress.”
Read the article here.