After a near-total shutdown in March, the leveraged finance market was able to regain some footing during Q2 2020. Direct lenders, who had spent much of March and April focused on their own portfolio and liquidity needs, were able to turn their attention to new opportunities during Q2. In fact, by June, institutional loan volume had surpassed the combined totals from March, April and May. While pricing remains elevated, and terms tighter than pre-COVID levels, the trend is gradually shifting back in borrowers’ favor as market tone improves and activity picks up.

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