The advantages of seniority

The senior and mezzanine segments of the leveraged loan market have remained largely immune to the pressures that have affected other areas of the market. Philip Moore looks at the factors that have contributed to this resilience

While the future may be uncertain for Pik notes and, to a lesser extent, second lien debt, bankers say that two other pivotal components of the leveraged finance market, senior debt and mezzanine, have remained resilient throughout the recent turbulence. Indeed, for the senior leveraged loan market it appears to remain a case of business as usual, with strong demand across all tranches continuing to support oversubscribed facilities.

The resilience of this market is a highly significant