Chart Of The Week: Middle Market And Large Corporate Yields

Our latest chart of the week helps explain why money is absolutely pouring into non-traded BDCs, SBICs, private limited partnershps and other vehicles earmarked for mid-market loans. While default rates have remained subdued, even during the financial crisis, middle-market loans in recent years have offered premiums to the broadly syndicated market, with a corporate yield of 8.08 percent in June, ocmpared with 7.07 percent for large corporate loans. Middle-market yield premiums rose from 7.18 percent iin May and 6.71 percent in June a year ago. Click on the link at the right for a larger version of the image.