Another Strong Year Expected for U.S. Leveraged Loans, Says GE Capital Markets

Feb 08, 2011

Outlook positive after big comeback in 2010

NORWALK, CT -- This year is expected to be another strong one for leveraged loans, said Sage Nakamura, managing director of loan syndications with GE Capital Markets, Inc. GE Capital, Americas is a leading provider of commercial loans and leases to mid-market businesses across diverse industries throughout the U.S., Canada and Mexico.

Nakamura characterized 2010 as "a comeback year for leveraged loans," with volume of $233 billion -- a 205% increase over 2009. "As the economy rebounded and loan defaults eased, liquidity flowed back into the loan market and investors, including GE Capital, were eager to lend," he said.

"The surge in investor demand for these types of loans that began at mid-year last year is still picking up speed in early 2011," he later noted. "Already, we are seeing tighter pricing on transactions, and yield compression should continue throughout the year."

Nakamura's video is one of a series that features GE Capital, Americas' leaders discussing issues relevant to mid-market borrowers. To view, click here: http://www.americas.gecapital.com/GECA/insightsandideas/overview.html

About GE Capital
GE Capital, Americas is a leading provider of commercial loans and leases to mid-market businesses across diverse industries and, through GE Capital Markets, was the leading arranger of U.S. middle market loans to private equity sponsor-backed companies in 2010. GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit www.gecapital.com or follow company news via Twitter (@GECapital).

GE (NYSE: GE) is a diversified infrastructure, finance and media company taking on the world's toughest challenges. From aircraft engines and power generation to financial services, health care solutions, and television programming, GE operates in more than 100 countries and employs about 300,000 people worldwide. For more information, visit www.ge.com.

Ned Reynolds
GE Capital
ned.reynolds@ge.com
+1 203 2295717
+1 203 8370699