More Lender Friendly Flex in March Pushed BSL Spreads Wider and Terms Tighter

CR TrendLines Topical Report: More Lender-Friendly Flex in March Pushed BSL Spreads Wider and Terms Tighter

Steve Miller: Executive - Covenant Review

23 March 2026

Download the Full Report to gain insights on:
  • How lender friendly flex dynamics in March reshaped clearing spreads and tightened documentation across the BSL primary market.
  • What shifting supply demand conditions reveal about investor risk appetite and deal execution outcomes.
  • Why more lender friendly flex in March pushed BSL spreads wider and terms tighter despite strong CLO formation.
  • How covenant protections evolved as flex activity increasingly favored lenders across sponsored transactions.
  • Where relative value signals are emerging across rating tiers amid bifurcated primary and secondary markets.

In March, BSL average bids stabilized on average, bolstered by a modest advance in Software names from their February lows. All told, the average bid of the JP Morgan BSL Index ticked up 0.14 point to 94.95 on March 20 from 95.09 on Feb. 28. Still, the average Index bid is down 1.60 points YTD and stands at the lower end of the post-Covid-19 range of 92.01-98.95, reflecting investor caution across risky assets.

In the new-issue market, conditions weakened further in March. Three stats illustrate the point:

• The average single B clearing spread gapped out to a 29-month high of S+470 (S+401/97.9) MTD.
• Repricing volume dried up completely MTD; April 2025 was the last month with no such activity.
• Upward flexes are running slightly ahead of downward flexes MTD—the last time the flex ratio was upsidedown
was March 2023.

 

Fill out the below form to view the full article:

Please note that we can only respond to valid business email addresses and the interview is already available to clients.

Recently Published

Research
Stressed Corporates Dealflow
EMEA Special Situations: Stressed corporates make up ~40% of LFI Special Situations universe in May, but dealflow continues to fall – LFI data

EMEA Special Situations: Stressed corporates make up ~40% of LFI Special Situations universe in May, but dealflow continues to fall – LFI data

June 23, 20261 min Read More
MEA Construction Linked Companies
EMEA Special Situations: Construction-linked companies could face sub-optimal A&Es as macroeconomic headwinds bite

EMEA Special Situations: Construction-linked companies could face sub-optimal A&Es as macroeconomic headwinds bite

June 23, 20261 min Read More
Selecta
Selecta: Purposeful Opposition to the Motions to Dismiss

Selecta: Purposeful Opposition to the Motions to Dismiss

June 23, 20261 min Read More
Axis Bank
Axis Bank: New $ PerpNC5.5 AT1 and 5Y Senior

Axis Bank: New $ PerpNC5.5 AT1 and 5Y Senior

June 23, 20261 min Read More

Stay in the loop with the latest credit insights direct to your inbox

Subscribe Now