TheLeadLeft
High Yield Bonds and Private Credit (First of Two Parts)
In our just-completed series on high-yield bonds [link], we conclude that issuer and investor activity has largely been driven by technical factors: near-zero interest rates, the Fed’s support of fallen angels, and skewed-to-worse ratings for leveraged loans. If this is the environment in the liquid market, how should investors be thinking of the illiquid market,…
Already a member? Log in here
Chart of the Week: Relatively Yieldy
Over the past decade the yield on middle market senior secured loans has outpaced that of many other asset classes.
Debtwire Middle-Market – 6/8/2020
Cost of borrowing rises across the leveraged debt markets in 2Q20 Source: Debtwire Par The cost of borrowing comes at a higher price in 2Q20 as risk is repriced in the leverage debt markets. Following several quarters of tightening spreads, the weighted average yield to maturity (YTM) of bonds issued so far in 2Q20 has…
Already a member? Log in here
Private Debt Intelligence – 6/8/2020
First-Time Fundraising Falls in 2020 Over the last six years, private debt first-time fundraising has been stable. Around 50 funds have reached a final close each year, securing an average of $10.5bn. But seems that the pandemic is affecting to first-time fund managers in the private debt industry and fundraising figures have decreased sharply…. Subscribe
Already a member? Log in here
PDI Picks – 6/8/2020
Pain across the board The covid-19 crisis has dished out equal treatment – hitting all types of sectors hard. The subject of the chart above is the CLO market, but it makes a point that is equally valid for the private debt universe. Not only have prospects for company default risen sharply in the wake…
Already a member? Log in here
Bonds vs. Loans – The Takeaway
What’s been described as “massive” new issuance in the high-yield market led to the most deal volume for May ($48 billion) since 2003, according LevFin Insight’s Matt Fuller. As our Chart of the Week depicts, cash inflows to bond funds totaled over $35 billion in the past nine weeks. That includes the top three weekly […]
Covenant Trends – 6/8/2020
Average EBITDA Adjustment Cap for Synergies & Cost Savings Contact: Steven Miller
Loan Stats at a Glance – 6/8/2020
Contact: Marina Lukatskymarina.lukatsky@spglobal.com