Index

• Page references followed by e indicate an illustrated exhibit.

• 1Q 2018Middle Market Indicator (National Center for The Middle Market), 1

• '40 Act. See Investment Company Act of 1940

• A
• ABL. See Asset-based lending
• Acquired fund fees and expenses (AFFE), 94–95, 221
• Actual risk calculations, simulated risk calculations (contrast), 65e
• Administrative agent, identification, 80
• Affirmative covenants, 80–81
• Agent, 80
  • valuation agent, 229
• Alpha, 120, 155–156, 221
  • fees, relationship, 137–138
• Alternative beta, 71
• Alternative lending, 168
• Alternative risk premium, 221
• Annual capital expenditures, limitations, 81
• Annualized firm-level risk (simulation input), 61
• Appropriate (benchmark characteristic), 146, 147
• ASC 820, 15, 221
  • fair value protocols, quality, 126
  • guidelines, 128
  • oversight, 24
  • prescription, 125
  • segregated assets, 125
• Asset allocation, 154, 159–161, 163
  • credit, relationship, 45–47
• Asset-based finance, substrategies, 192
• Asset-based lending (ABL), 191–194
• Asset classes, 42–45
  • contributions, 219–220
  • credit, separation, 41
  • cumulative returns, 23e
  • expected return/risk/correlations, 160e
  • performance comparisons, 21
  • return/risk, 22e
• Assets
  • financing, infrastructure debt (usage), 195
  • investment, 91
  • maintenance, evidence, 81
  • value, 125, 228
• Asset weighted, term (definition), 221

• B
• Bank financing, selection
  • European sponsor survey, 179e–180e
  • US sponsor survey, 177e–178e
• Bank loans, 44
  • credit losses, 36e
  • price comparison, 127e
• Basel III risk capital/liquidity requirements, 169
• Base rate, 4, 59, 79, 221
• Benchmark
  • characteristics, 146
  • importance, 144–148
  • return, 221
  • risk, 143, 221
• Beta, 68, 71, 120, 221
• Black-Cox model, 66–67, 68e, 79, 221
• Black, Fischer, 66
• Black-Scholes model, 53–54, 221
• Black-Scholes option pricing formula, 54
• Bloomberg Barclays 3–5 Year Treasury Index, 21, 24, 221
• Bloomberg Barclays Aggregate Bond Index, 4, 7, 26, 41
• Bloomberg Barclays High Yield Bond Index, 24, 32, 64–65, 221
• Board of directors meetings, observer rights, 81
• Borrower
  • European borrowers, 176–178
  • lending, limitations, 81
  • perspective, 175
  • sponsored borrower, 228
• Broadly syndicated loans (BSLs), 3, 72, 222
• Broker quote, 17, 222
• Business development companies (BDCs), 3, 9–10, 88, 221
  • advantages/defining, 91–96
  • dividend yield, 101
  • fees/expenses, 123
  • industry statistics, 95, 96e
  • leverage, 83, 158
  • management fees, comparison, 136
  • market indices, 100–101
  • nonlisted BDCs, 98e
  • operational requirements, 92–93
  • private BDCs, 96–98
  • publicly traded BDCs, 3, 98–100, 99e
  • public market, 100–101
  • total return, 101–103
  • track record, 123–124
• Businesses, maintenance (evidence), 81
• Buyout funds, J-curve comparison, 140e
• Buyout partnerships, 135

• C
• Calendar year interest income, realized credit gains/losses (correlation), 113
• Cambridge Associates US Private Equity Index, 23–24, 222
• Capital asset pricing model (CAPM), 53–54, 222
• Capital expenditures, limitations, 81
• Capital formation, 173
• Capital International Index, 222
• Capitalization weighting, 100
• Capital structures, evolution, 171
• Catastrophe (cat) bonds (144A securities), 208–211
• Center for Research in Security Prices (CRSP), 9, 223
• Charge-offs, 36
• Cliffwater BDC Index, 100
  • market return, net operating return (comparison), 102e
  • premium/discount, 102e
  • price return, NAV return (comparison), 103e
  • Treasury yields, comparison, 101e
• Cliffwater Direct Lending Index (CDLI), 9–12, 21, 222
  • benchmark, 219
  • cumulative net realized gains (losses), 113e
  • current yield, 31e
  • industry weightings, 149e
  • net realized gains (losses), 112e
  • performance, 11e
  • private debt benchmark, 146–148
  • total return, 114e
  • yield, equation, 74
  • yield-to-three-year-takeout, 31e, 32
• Collateralized loan obligations (CLOs), 132, 187–191, 222
  • collateral manager, 191
  • economics, 188–190
  • leveraged loans, 187
  • mechanics, 190–191
  • notes/equity, model pricing, 189e
  • structure, 188
  • take-outs, 122
• Combined fee, 132–133
• Commercial and industrial (C&I) loans, 2–3, 9, 222
• Commercial mortgage-backed securities (CMBSs), 182
• Common factor risk, 222
• Common stock, 187
• Comparative credit loss rates, 35
• Conditions precedent, 79
• Consumer/marketplace lending, 197–199
• Consumer Price Index (CPI), 161
• Convexity, 222
• Corporate books/records (affirmative covenants), 80
• Corporate debt, value (equation), 54
• Corporate direct lending, 220
  • expected return, calculation, 157e
  • market, consistency, 156
• Corporate existence, evidence, 81
• Corporate governance, 95
• Corporate investments, limitations, 81
• Correlation, 63, 222
  • inputs, 45–46
  • senior correlation, 228
• Cost value, 15, 222
• Country risk, 173
• Covenants, 80–81, 222
  • covenant lite, 68, 82, 223
  • exclusion, examples, 68e, 69e
  • inclusion, 66–69, 68e, 69e
  • incurrence covenant, 224
  • loan agreement, relationship, 79
  • maintenance covenants, 225
• Cox, John, 66
• Credit
  • asset allocation, relationship, 45–47
  • asset class, 41
  • credit-related assets, range, 48
  • measures, excess returns, 44
  • opportunity descriptions, 49e–50e
  • optimal allocations, 45e
  • private/public credit opportunities, 47–51, 47e
  • return/risk, 43e
  • theory, loans (relationship), 53
• Credit losses, 36e, 111
• Credit loss rates, comparison, 35
• Credit premium, 55, 223
• Credit rating agency, 223
• Credit risk, 110, 137, 220, 223
• Credit risk premium, 55
  • firm risk, relationship, 57e
  • risk-free rate, relationship, 59e
  • time to maturity, relationship, 60e
• Credit Suisse Leveraged Loan Index, 137, 143
• Cumulative net realized gains (losses), direct lending asset managers/CDLI, 113e
• Cumulative realized losses, 17
• Current yield, 29–34, 223
  • Cliffwater Direct Lending Index example, 31e

• D
• Debt costs
  • covenants, inclusion/exclusion example, 68e
  • Merton model, 56e
• Debtor in possession (DIP), 205–207
• Debt to EBITDA ratio, 81
• Default, 5, 15, 223
• Default events, 80
• Direct lenders
  • abilities, confidence level, 151
  • credit losses, 111–113
  • fees, combination, 132–133
  • selection, institutional approach, 115
• Direct lending
  • asset managers, cumulative net realized gains (losses), 113e
  • benchmarks, 143–144
  • corporate direct lending, expected return (calculation), 157e
  • drawdown, 27e
  • expected returns/risks, 153
  • investors, 4–7
  • J-curve comparison, 140e
  • J-curve migration, relationship, 139
  • returns, components, 12e
  • risk factors, 172–174
• Direct lending fees, 131–135
  • charges, 131–132
  • differences, factors, 134e
  • distribution, 134e, 137e
  • private equity, comparison, 135–136
• Direct lending managers, 114–115
  • cataloguing, methodology, 220
  • direct loan yield, 107–111
  • fees, 132
  • incentive fee, 132
  • investment strategy, 116–117
  • loan construction/monitoring, 119
  • net realized gains (losses), 112e
  • organization/origination, 116–118
  • performance, comparison, 106e
  • portfolio construction, 119–121
  • selection, 105–107
  • style/fees, 133–135
  • total return, 114e
  • underwriting, 118–119
  • workout, 119
• Direct lending portfolio
  • indicative direct lending portfolio, 84e
  • indicative fee/leverage specifications, 84e
  • leverage, inclusion (performance simulation), 86e
  • levered direct lending portfolios, simulated return/risk, 86e
  • optimization, 164e
• Direct lending private partnerships, portfolio characteristics, 120e
• Direct loan fair value, par (principal) value (contrast), 31e
• Direct loan income, loan asset value percentage, 13e
• Direct loan manager, 108e
• Direct loan portfolios, leverage, 83, 85–88
• Direct loans, 5, 13, 35, 168
  • governance/structure, 79
  • liquidity, degree, 37
  • price comparison, 127e
  • risk factors, manager exposure, 109e
  • total return, loan asset value percentage, 19e
  • yield spreads, 33e
• Direct loan yields, 13–14, 33e, 107–111
• Directly originated upper middle market (risk premium), 73
• Direct US middle market corporate loans, risk premiums, 72e
• Dispersion, 108–112, 223
• Diversification, 122, 148–151
  • test, 93–94
• Dodd-Frank Act, 175, 223
• Down-and-in option, 67e, 223
• Due diligence, checklist, 115e
• Duration, 4–5, 39, 223
• Duration-adjusted Bloomberg Barclays High Yield Bond Index, 65–66

• E
• Earnings before interest, taxes, depreciation, and amortization (EBITDA), 5–6, 61, 223
  • borrower size, 133–134
  • company, capital structure, 6e
  • covenant, 81
  • ranges/amounts, 1, 117
  • role, 82
• Effective life, 5, 30, 37, 223
• Effectively connected income (ECI), 93, 223
• Efficient frontier, 163
• Equipment finance, 192
• Equity, 207, 223
  • financing, 6
  • return/risk, 43e
• Euribor, 168, 223
• Euro crisis (Eurozone crisis), 17, 224
• European borrowers, 176–178
• European direct lending market, 168–171, 170e
• European direct loans, 168, 171–172
• European leveraged buyout market, 172
• European middle market
  • buyout firms, survey, 178
  • direct lending, 167
• Exchange-traded funds (ETFs), 3, 187
• Expected combined fee, 132–133
• Expected correlations (asset classes), 160e
• Expected default frequency, 118
• Expected direct loan yield, equation, 73
• Expected returns
  • asset-based lending, 193
  • asset classes, 160e
  • consumer/marketplace lending, 198
  • direct lending, 153–161, 157e
  • infrastructure debt, 195–196
  • litigation financing, 215–216
  • mezzanine debt, 185
  • real estate debt, 183
  • reinsurance, 210–211
  • rescue financing, 206–207
  • royalties, 200–201
  • venture debt, 203–204
• Expected risks
  • asset-based lending, 193
  • asset classes, 160e
  • consumer/marketplace lending, 198
  • direct lending, 153, 161–162
  • infrastructure debt, 195–196
  • litigation financing, 215–216
  • mezzanine debt, 185
  • real estate debt, 183
  • reinsurance, 210–211
  • rescue financing, 206–207
  • royalties, 200–201
  • venture debt, 203–204

• F
• Fair value, 224
  • definitions, 15, 125–127
  • loan, 93
  • quarterly changes, 15
• FAS 157, 17–18
• Fiduciary, 90, 224
• Financial Accounting Standards Board (FASB) asset value definition, 125
• Financial asset lending/rediscounting, 192
• Financial covenants, borrower control, 80–81
• Financing costs, 75
  • determinants, 88–90
  • loan subordination, relationship, 90e
• Financing leverage cost, factors, 88e
• Fin Tech, 197
• Firm-level risk (simulation input), 61
• Firm risk, credit risk premium (relationship), 57e
• Firm volatility, 58e
• First lien, 134
  • loan, simulation results, 61e–64e
  • risk, 65
• First-out loan, 224
• Fixed asset finance, 193
• Floating interest rates (simulation input), 60
• Floating rate, 4, 34, 224
• Floating rate credit indices, 25
• Forms 10-K/10-Q, SEC filings, 10
• Fund sponsors, 153

• G
• GICS sectors, examination, 149–150
• Global financial crisis (GFC) (2007–2009), 3, 16–17, 26–27, 219, 224
  • consumer finance strategies, 198
  • credit opportunities, 41
• Gordon Model (Gordon Growth Model), 155, 224
• Government-sponsored enterprises (GSEs), 2
• Great financial crisis (GFC), 107
• Gross assets, direct lending managers (fees), 132

• H
• Harvard State of Small Business Lending, 191–192
• Hedge funds, investment emergence, 163–164
• Hedging, speculation/permissions (prohibition), 81
• High-yield bank loans, 165
• High-yield bonds, 35, 165
  • credit losses, 36e
  • price comparison, 127e
  • yields/yield spreads, 33e
• Hurricanes, losses, 210–211

• I
• Illiquidity premium, 24, 76, 224
• Impairment, 15, 17, 28, 30, 224
• Income return, 9–14, 35, 224
• Incurrence covenant, 81–82, 224
• Index reporting cycle, 10
• Industry loss warranties (ILWs), 209
• Infrastructure debt, 194–197
• Initial public offering (IPO), 225
• Insurance linked securities (ILS), 208–209
• Intellectual property (IP), cash flow stream generation, 199
• Inter-Agency Guidance on Leveraged Lending, 175
• Intercept, 76, 89, 225
• Interest income, yield (relationship), 73
• Interest rates
  • optimal allocations, 45e
  • return/risk, 43e
• Internal rate of return (IRR), 121, 140–141, 216
• Investable (benchmark characteristic), 146
• Investment Company Act of 1940, 10, 221
• Investment fees, 131, 137–138
• Investment policy statement (IPS), 153
• Investment strategies
  • asset-based lending, 193–194
  • consumer/marketplace lending, 199
  • direct lending managers, 116–117
  • infrastructure debt, 196–197
  • litigation financing, 216–217
  • mezzanine debt, 185–187
  • real estate debt, 183–184
  • reinsurance, 211–212
  • rescue financing, 207
  • royalties, 201–202
  • venture debt, 204–205

• J
• J-curve, 139, 186, 225
  • comparison, example, 140e
  • migration, direct lending (relationship), 139
  • phenomena, mitigation/elimination, 132
• Junk bonds, 7, 225

• L
• Last-out loan, 225
• Level 2 risky assets, 127
• Level 3 assets, 15, 17–18, 225
• Leverage, 225
  • financing, 121–123
  • net asset value, relationship, 91
  • optimum, 87
• Leveraged buyout (LBO), 187, 225
• Leveraged loans, 34, 225
  • CLOs, 187–188
  • yields/yield spreads, 33e
• Levered direct lending, 164e, 165
  • portfolios, simulated return/risk, 86e
• Levered portfolio, 159
• Liens, prohibitions, 81
• Liquidity, 37, 38e
  • premium, 55, 225
• Litigation financing, 212–217
• Litigation funding, 214–215
• Loan
  • agreement, covenants (relationship), 79
  • commitment, 79
  • construction/monitoring (direct lending managers), 119
  • credit theory, relationship, 53
  • loan-loss reserve, 11
  • loan-to-value ratios, 56e
  • risk, 60–63
  • subordination, financing cost (relationship), 90e
  • valuation, 125
  • values, establishment, 15
• Loan assets
  • percentage, 16e, 193
  • subordination, 89
  • value, percentage, 13e, 19e
• Loan portfolio
  • direct loan portfolios, leverage, 83
  • risk, estimation, 63–64
• Loan-to-value ratio, 181–182, 225
• Log scale, 12, 25, 225
• London Interbank Offered Rate (LIBOR), 4, 168, 189, 225
• Lower middle market, 73, 225

• M
• Maintenance covenants, 81, 119, 225
• Management fees, BDCs (comparisons), 136
• Manager yield, equation, 74
• Marginal yield, 56, 225
• Marketplace lending. See Consumer/marketplace lending
• Market-related risk, 61
• Market return, net operating return (comparison), 102e
• Market size/structure
  • asset-based lending, 191–192
  • consumer/marketplace lending, 198
  • infrastructure debt, 195
  • litigation financing, 213–215
  • mezzanine debt, 184
  • real estate debt, 181–182
  • reinsurance, 208–210
  • rescue financing, 206
  • royalties, 199–200
  • venture debt, 202–203
• Markovitz, Harry, 21
• Master limited partnerships (MLPs), 29, 91, 226
• Maximum drawdown, 225
  • risk, relationship, 25–28
• Mean-variance analysis, 226
• Measurable (benchmark characteristic), 146, 147
• Media/entertainment royalties, acquisition, 202
• Merrill Lynch 0–3Month Treasury Bill Index, 21, 24
• Merton, Robert C., 54
  • debt cost model, 56e
  • model, 53–57, 64–66, 226
• Mezzanine, 184, 226
• Mezzanine debt, 184–187, 196
  • expected return/risk, 185
  • investment strategies, 185–187
  • market size/structure, 184
• Mezzanine funds, providers, 185–186
• Mezzanine loans, 183, 187
• Middle market company, balance sheet, 5, 6f
• Middle market corporate loans (simulation input), 60
• Middle market direct lender, due diligence checklist, 115e
• Middle market direct loans, 34, 226
• Middle market loans
  • credit loans, 36e
  • risk premiums, discovery, 76–77
• Monte Carlo simulation, usage, 53
• Moody's, Analytics RiskCalc (usage), 76–77
• MSCI All Country World Index, 162

• N
• National Council of Real Estate Investment Fiduciaries (NCREIF), 23, 226
• National Council of Real Estate Investment Fiduciaries Property Index (NPI), 24, 144, 146, 226
• Negative covenants, 80–81
• Net annualized returns, 97, 226
• Net assets, direct lending fees distribution, 134e, 137e
• Net asset value (NAV), 92, 96, 102, 156, 226
  • Cliffwater BDC index price premium/discount, 102e
  • leverage, relationship, 91
  • return, price return (comparison), 103e
• Net gains (losses), 14–16
• Net operating return, market return (comparison), 102e
• Net realized gains (losses), 16–17
  • direct lending managers/CDLI, 112e
  • loan asset percentage, 16e
• Net realized losses, build-up, 15
• Net unrealized gains (losses), 17–18, 19e
• Non-bank commercial lenders, 116
• Nonbank financing, selection
  • European sponsor survey, 179e–180e
  • US sponsor survey, 177e–178e
• Nonbank lending, rise, 2–4
• Non-investment-grade loans, 226
• Nonlisted BDCs, 98e
• Nonmarket idiosyncratic risk, 61
• Non-public debt/equity, assets (investment), 91
• Non-sponsor borrower (risk premium), 73

• O
• Obligation payments compliance (affirmative covenants), 80
• Oil crisis (2015–2016), 32, 226
• Optimal portfolio, 153
• Organization (direct lending managers), 116
• Original issue discount (OID), 14, 55, 111, 207, 226
• Origination, 13, 226
  • direct lending managers, 117–118

• P
• Pari passu, 118, 226
• Par (principal) value, direct loan fair value (contrast), 31e
• Payment-in-kind (PIK), 14, 39, 75, 171, 227
  • preferred stock, 187
• Peer to peer, term (usage), 197
• Platform companies, 198
• Policy asset mix, 153
• Portfolio
  • construction, 119–121, 143
  • diversification, constraints, 91
  • information, 131
• Prepayment, 5, 14, 30, 227
• Price return, NAV return (comparison), 103e
• Pricing, practice, 18
• Principal, 227
• Private BDCs, 96–98, 98e, 125
• Private credit opportunities, 47–51, 47e
• Private debt
  • benchmark, 146–148
  • loan-to-value ratios, 56e
  • opportunities, 181
• Private direct loans, 81–82
• Private equity, 155, 163, 173, 175, 227
  • direct lending fees, comparisons, 135–136
  • managers, fees, 131–132
• Private mezzanine funds, structure, 186
• Proxy statements, 93
• Public asset classes, risk values, 25–26
• Public BDCs, 97, 101
• Public credit opportunities, type, 47e
• Public equities, 163
• Publicly traded BDCs, 3, 98–100, 99e

• Q
• Quota shares, 209

• R
• Random walk, 26, 128, 227
• Real estate debt, 181–184
  • expected return/risk, 183
  • investment strategies, 183–184
  • market size/structure, 181–182
• Real estate investment trust (REIT), 28, 48–50, 91, 143, 182, 227
• Realized gains, 11, 227
• Realized gains/losses, unrealized gains/losses (linkage), 14–15
• Recovery, 35, 67, 227
  • rates, 36, 67, 79
• Recovery given default, 118
• Rediscounting, 192
• Reference rate, 227
• Reflective (benchmark characteristic), 146, 147
• Registered investment company (RIC)
  • operational requirements, 92
  • qualification, 93
• Regulated investment company (RIC), 94–95, 227
• Reinsurance, 207–212, 227
• Reinvestment period, 190
• Remedies, usage, 80
• Representations, borrower usage, 80
• Rescue financing, 205–207
• Retrocessional contracts, 209
• Return, 23–25, 128
  • distribution, 145
  • increase, 85
• Return-to-risk ratio, reduction, 85–86
• Revolver, 5–6, 122, 169, 227
• Risk, 129
  • calculations, contrast, 65e
  • factors, 75, 172–174
  • loan portfolio risk, estimation, 63–64
  • loan risk, estimation, 60–63
  • maximum drawdown, relationship, 25–28
• Risk-free rate, 59
• Risk-off, 26, 227
• Risk premium (premia), 71–72, 221, 227
  • availability, 72e
  • calculation, 76
  • methodology, 76–77
  • types, 73
• Royalties, 199–202
• R-squared, 68, 113, 227
• Rule 17d, 94, 227
• Russell 2000Index, 1, 58, 61, 150, 228
  • industry weightings, 150e
• Russell 3000Index, 25–27, 143, 228

• S
• Sarbanes-Oxley (SOX) compliance, 92
• Second lien, 62
  • loan, simulation results, 61e–64e
  • subordinated debt (risk premium), 73
• Securities and Exchange Commission (SEC), 9
  • 10-K/10-Q filings, 10
• Senior debt (senior secured debt), 56, 228
• Senior first lien, 228
• Senior first-lien loan, 6
• Senior second lien, 228
• Serial correlation, 26, 87, 128, 228
• Shadow rating, 118, 228
• Short volatility, 63, 228
• Sidecars (quota shares), 209
• Simulated risk calculations, actual risk calculations (contrast), 65e
• Simulation, 61e–64e, 69
  • inputs (loan risk estimation), 60–61
• Skew, 63–65, 68, 228
• Small Business Administration (SBA) financing source, 122
• Small Business Investment Companies (SBICs), 92, 122–123
• Smoothing, 26, 128–129
• Special purpose vehicle (SPV), 122
• Specialty Finance, 197
• Specified (benchmark characteristic), 146, 147
• Sponsored borrower, 110, 134, 228
• Standard deviation, 26, 46, 55, 114, 228
• Standard & Poor's/LSTA Leveraged Loan Index, 4, 23, 51, 64, 76, 137, 143, 228
• State fund returns, distribution, 145e
• Stocks, optimal allocations, 45e
• Stretch senior, 56, 228
• Structure premium, 71
• Subordinated debt, 110, 228
• Syndicate, 228
• Systematic risk factors, identification, 220

• T
• Time to maturity, 60, 60e
• Total return, 18–20, 113–114
• Tracking error, 143, 228
• Tranches, 181
• Transparency requirements, 11
• Treasury bill rates, 59
• Treasury yields, Cliffwater BDC Index (comparison), 101e

• U
• Unambiguous (benchmark characteristic), 146
• Underwriting (direct lending managers), 118–119
• Unitranche loan, 228
  • portfolio, covenant inclusion/exclusion (simulation results), 69e
  • simulation results, 61e, 63e
• Unlevered direct lending, 164e, 165
• Unrealized gains, 11, 228
• Unrealized gains/losses, realized gains/losses (linkage), 15
• Unrealized losses, 107
• Unrelated business taxable income (UBTI), 93, 228
• Unsmoothing, 229
• Upper middle market, 229
• US Bankruptcy Code, 205
• US borrowers, 175–176
• US corporate debt market, 2e
• US corporate middle market, 149
• US direct lending market, European direct lending market (comparison), 170e
• US mezzanine fund return (IRR), vintage year rating, 185e
• US middle market corporate direct lending, 1
• US middle market corporate direct loans, 9, 11–13
• US middle market direct loans, 37, 38e, 72
• US middle market lending, risk premiums, 71
• US stocks, return distribution, 145

• V
• Valuation agent, 11, 17, 229
• Variance, 229
  • mean-variance, 45, 51
• Venture debt, 202–205
• Vintage
  • diversification, 39
  • weighting, 39, 229
  • year, 39, 229
• Volatility, 57–58, 58e, 228
• Volatility Index (VIX), 57, 229

• W
• Warranties, usage, 80
• Warrants, 15–16, 80, 229
• Wells Fargo BDC (WFBDC) Index, 100
• Working capital finance, 192
• Workout (direct lending managers), 119

• Y
• Yields, 73, 229
  • demands, 219
  • dispersion, 108–109
  • examples, 33e
  • interest income, direct loan manager, 108e
  • marginal yield, 56, 225
  • representation, 56
• Yield spreads, examples, 33e
• Yield to maturity (yield-to-maturity), 29, 229
• Yield-to-three-year takeout, 30–34, 31e, 229