Reflecting ongoing concerns about the economy, syndicated LBO financing dropped significantly in 2022 as banks become unwilling to take on further risk. As a result, private credit remained the dominant source of financing, with sponsors much more willing to take on risk. As a result, it is no surprise that the spread differential between sponsored and non-sponsored leveraged loans has widened. As of 9/30/2022, sponsored companies paid, on average, 91 bps more than non-sponsored companies versus a historical premium of 43 bps.