Leveraged loan issuers posted a small, sequential increase in cash-flow growth during the third quarter. On average, EBITDA growth among S&P/LSTA Index issuers that file publicly inched to 6.8% from a four-year low of 6.1% in the second quarter, according to S&P Capital IQ. As this chart illustrates, cash-flow growth this year has stabilized in the mid-single digits after an extended period of more robust increases after the recession ended in June 2009.
Looking ahead, most participants expect the modest EBITDA growth rate of 2013 to persist in the quarters ahead. The reason, they say, is that there is nothing on the immediate horizon that appears likely to move the economic needle significantly – assuming, of course, no exogenous shocks that unhinge the global capital markets. – Steve Miller