Reflecting ongoing concerns about the economy, syndicated LBO financing dropped significantly in 2022 as banks become unwilling to take on further risk. This has continued in 1Q23; and, as a result, private credit remains the dominant source of financing, with sponsors much more willing to take on risk. Given this, it is no surprise that the spread differential between sponsored and non-sponsored leveraged loans has widened. As of 3/31/2023, sponsored companies paid, on average, 88 bps more than non-sponsored companies versus a historical premium of 44 bps.