Private Debt Intelligence – 2/27/2017

Private Debt Management Fees Drop to Eight-Year Low

Fund terms within the alternative assets industry have been of particular focus over the last few years as investors have largely united to push managers for greater transparency and improved alignment of interest.

Within the private debt industry, this approach appears to be paying dividends with the average management fee reaching an eight-year low for 2016 vintage funds which charge a mean fee of 1.63%…

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Relative Value

The attractiveness of the middle-market loan asset class is highlighted by its consistent premium over traditional high yield bonds.

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Markit Recap – 2/20/2017

The political polling industry is suffering a crisis of credibility after failing to predict Brexit and Donald Trump’s victory in the US presidential election. A thorough overhaul of its methods is surely needed.

But in a world where political risk is more potent than ever, investors have little else to go on, and polls still have the potential to trigger considerable market volatility. A prime example this week was France, where polls showed far-right – and anti-euro – candidate Marine le Pen increasing her lead in the first-round presidential vote. The reaction in the credit markets was significant – French sovereign CDS widened from 56bps to 68bps in the space of three days, and is now over 40bps wider than levels reached in the post-Brexit aftermath of September 2016…

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Brexit Shmexit

According to Preqin, low interest rates is top factor affecting credit portfolios, with central banks and the US economy next.

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Private Debt Intelligence – 2/20/2017

Credit Strategies Start 2017 with Positive Performance in January

Preqin research finds that credit strategies have maintained their positive performance from 2016, with a strong start to the year through January 2017, as investor and fund manager confidence in the strategy grows.

Credit strategies were the second best performing leading hedge fund strategy last year with annual returns of 8.50%, well outstripping the Preqin All-Strategies Hedge Fund benchmark (7.40%)…

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