With the bulls running, issuers rush to refinance seasoned loans and finance dividends. Leveraged loan volume climbed to a post credit crunch high between January and March. Two-thirds were refinancings, however. Thus, the market’s technicals tilted further in favor of issuers. Check out LCD's new, free web sites, LeveragedLoan.com and HighYieldBond.com http://www.leveragedloan.com http://www.highyieldbond.com/ * Job postings * Online Loan Market and High Yield Primer * News and analysis * Market Stats Video format of this presentation: http://youtu.be/h4ldleIynNg Connect with LCD Facebook: http://www.lcdcomps.com/facebook Like LCD on Facebook for monthly analysis on LBO/Private equity stats, as well as Default/Restructuring analysis. LinkedIn: http://www.lcdcomps.com/linkedin There are over 10,000 market contacts in LCD's Leveraged Loan Group Twitter: http://www.twitter.com/lcdnews News, commentary, other leveraged finance info Web: http://www.lcdcomps.com Contact: marc_auerbach@spcapitaliq.com

1. Text
US Leveraged Finance Market Update
April, 2013
Steve Miller - Managing Director

2. New-Issue Loan Volume – by Year
$550B
Text
Pro Rata
Institutional
$440B
$330B
$220B
$110B
$0B
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1Q12 1Q13
Source: LCD - Leveraged Commentary & Data

3. S&P/LSTA Index – Average Price
98
96
94
91
89
3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13
Source: LCD - Leveraged Commentary & Data

4. CLO Issuance
$10B
$8B
$6B
$4B
$2B
$0B
3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13
Source: LCD - Leveraged Commentary & Data

5. S&P/LSTA Index Loans Outstanding
$565B
$552B
$539B
$526B
$513B
$500B
5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13
Source: LCD - Leveraged Commentary & Data

6. Average New-Issue Clearing Yield of First Lien Loans
All-BB
All-B
9%
8%
7%
5%
4%
3%
3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13
Source: LCD - Leveraged Commentary & Data

7. Covenant-lite as a percent of S&P/LSTA Index
40
30
20
10
0
1/4 9/4 5/5 1/6 9/6 5/7 1/8 9/8 5/9 1/10 9/10 5/11 1/12 9/12 3/13
Source: LCD - Leveraged Commentary & Data

8. Loan Default Rate
12%
10%
7%
5%
2%
0%
12/98 8/00 4/02 12/03 8/05 4/07 12/08 8/10 3/13
Source: LCD - Leveraged Commentary & Data

9. Loan Market – Outlook
• Lackluster calendar
• Retail/institutional demand remains strong
• CLO market choppier
• Still positive bias persists
Source: LCD - Leveraged Commentary & Data

10. Follow LCD
www.lcdcomps.com
news, analysis, research, archives
www.linkedin.com/groups/LCD-Leveraged-Loan-Group-2092432
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