December Fund Finance Market Update

The active underlying deal environment comingled with the December 31st LIBOR transition deadline combined to make November the busiest month in the history of Cadwalader Fund Finance. We have no doubt that's been the case across the market as a whole, for virtually all institutions and regions. Below are our short-take market observations as we lean into the tape at the finish line.   

• The demand environment has not only remained elevated but appears to be accelerating through Q4. Virtually every demand-correlated metric, including new matters opened, hours accrued, and prospective hours, all set records in November.
• YTD average pricing for new origination on US Subscription has dipped below 200 bps to LIBOR. The trend is toward gradually tighter margins. The quarterly low points are falling far faster than the averages, which are down less than 15 bps YTD. We believe the elevated demand environment will keep the pace of tightening gradual for the foreseeable