What is leveraged finance in the current equity cycle? It’s

What is leveraged finance in the current equity cycle? It’s closely tied to private equity’s appetite for large deals. Recent Nasdaq gains of 4% month-over-month have prompted leveraged loan issuance to rise 8% in Q2, signaling confidence in growth sectors. Still, macro CPI data at 3.4% YoY tempers aggressive leverage models. In the US, CMBS of data centres account for approximately 30% of data centre financing deal volume, and this market has been active since about 2020. A US CMBS involves different layers of rated notes, with the highest class of notes usually obtaining a AAA rating and the rating of the subsequent classes of notes gradually decreasing accordingly. Data centres tend to be well suited to CMBS due to their high tenant quality and renewal stability. In the US, the single-asset single-borrower data centre market has been growing in particular recently. This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice. What is leveraged finance fits into bullish debt capital markets when equities trend higher. With Nasdaq Composite achieving new all-time highs this quarter, leveraged loan syndication demand has seen a 10% uptick since March, especially from tech unicorns entering public markets.