Why Second Lien Loans Are Here To Stay Despite Tightening Liquidity

The author says, "In this market, issuance is certainly down considerably from a year earlier, and it's starting to pick up a little bit because more structures are requiring junior debt". The LPC data shows a significant decline, but in the middle market, most of the second lien loans are not syndicated and therefore won't show up in these charts. One is seeing more buyouts and refinance activity requiring junior debt, but here's the problem... there are far fewer buyouts than there were a year ago.