Wall Road banks have gained near $16bn in offers from the non-public credit score market, in line with analysis from Financial institution of America.

Bloomberg reported that the financial institution’s evaluation has revealed that debtors swapped loans acquired from direct lenders for extra inexpensive debt from Wall Road banks. Round $16bn has moved from non-public to public credit score markets this yr.

For instance, Thryv, the proprietor of Yellow Pages, and software program supplier Encora Digital function among the many newest firms to go for conventional leveraged loans.

Learn extra: Personal debt buyers count on rise in dealmaking and fundraising

Firms have been motivated to shift from non-public to public debt to profit from decrease charges and fewer stringent debt covenants. Nonetheless, non-public lenders have responded by slicing charges and bettering their phrases.

PitchBook’s LCD division additionally discovered {that a} handful of debtors returned to the broadly syndicated mortgage (BSL) market in February and March of this yr, profiting from receptive circumstances to refinance their debt. This transfer away from non-public debt to BSL is anticipated to proceed all year long and increase BSL provide.

Learn extra: Competitors intensifies between non-public credit score and syndicated loans