What a difference a year has made. The leveraged loan market appears to have turned a corner, and a big part of that has been the willingness of banks to turn on the faucet and fund new deals. This was especially true during the third quarter. And while no one expects that faucet to morph into a fire hose anytime soon, many market participants believe lending will continue to increase for the remainder of 2009 and into 2010.
“Firm underwritings have been scarce, but we just provided our first four fully underwritten commitments for the first time basically since the beginning of the year,” said a New York-based banker. “And we’ve gotten half a dozen underwrites approved on top of that. So we’re back in business.”