TheLeadLeft
Supply Chain Blues (Last of a Series)
Last fall, the Harvard Business Review examined Covid’s impact on supply chains [link]. The pandemic, they wrote, “exposed vulnerabilities in the production strategies and supply chains of firms just about everywhere,” The study also presciently identified “the growing electronics content in modern vehicles” as a potential bottleneck. Today we are witnessing how the shortage of…
Already a member? Log in here
Chart of the Week: Delivering the Goods
Increased bottlenecks from Covid-related issues have extended expected lead times.
Covenant Trends – 10/4/2021
Average New-Issue Clearing Spreads (Single B) and Covenant Terms for PE-Backed First-Lien Institutional Loans (Past performance is no guarantee of future results.) Contact: Steven Miller
PDI Picks – 10/4/2021
The challenge of meeting ESG ambitions Sustainability is increasingly being factored into investment decisions, but there is little uniformity in approach. Everyone can agree that taking environmental, social and governance issues into account is now a greater priority for private debt fund managers than it has ever been in the past. But questions remain over…
Already a member? Log in here
Loan Stats at a Glance – 10/4/2021
Contact: Marina Lukatskymarina.lukatsky@spglobal.com
Leveraged Loan Insight & Analysis – 9/27/2021
2021 Sponsored leveraged loan issuance is US$493.4bn, up 120% YoY Near the end of the 3Q21, sponsored leveraged loan issuance for the year is US$493.4bn, broken out between US$122.9bn of LBO volume and US$171.6bn of non-LBO volume. Issuance is up 120% over the same time period in 2020, and up 52% from FY2020 but still…
Already a member? Log in here
Deal Flow and Bandwidth Issues
Before Covid the persistent view of private credit was too much capital chasing too few deals. Transaction inflation was resulting in tight spreads, high leverage and weak terms. When Covid hit this balance shifted dramatically in favor of the investor. Deal supply dried up, lenders retreated, and terms strengthed. But within weeks central bank liquidity […]
Debtwire Middle-Market – 9/27/2021
Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the *Cliffwater Direct Lending Index (CDLI) current yield, which is based on the investment income of the underlying assets held by public and private BDCs. BDCs invest in middle market companies, and the Index…
Already a member? Log in here