Wall Street banks are re-entering the second-lien loan market, driven by strong demand from diverse lenders, including private credit firms and CLOs. This resurgence allows banks to syndicate deals, reduce borrowing costs for issuers, and earn additional fees. Recent deals, like those for Alera Group and OSTTRA, demonstrate tighter spreads and increased investor appetite for these riskier loans.
Originally published by The Economic Times https://economictimes.indiatimes.com/markets