Morningstar PitchBook Buyout Replication Index excess performance attribution (annualized) Download PitchBook’s Report here. A returns-based factor analysis using the Fama-French five-factor model plus momentum reveals that the positive alpha from security selection can be explained primarily by a higher market beta…. Subscribe to Read MoreAlready a member? Log in here...
US Private Credit Defaults Rose Sharply in 2024 While Lender Losses Remained Limited Click here to learn more. Join Fitch Rating upcoming Webinar: The Highs and Lows of Private Credit Defaults and Recoveries The default rate in Fitch Ratings’ portfolio of U.S. privately monitored ratings (PMR) rose sharply to 8.1% in 2024. This is the…
Monthly Returns Diminish Amid Heightened Uncertainty The Bloomberg US Leveraged Loan Index (Ticker: LOAN), a measure of the US institutional, broadly syndicated, leveraged loan market, returned just 0.21% in February, marking the weakest return since October 2023…. Subscribe to Read MoreAlready a member? Log in here...
M&A Deal Activity Amid the whiplash of “will they or won’t they” come into effect, talk of tariffs have contributed to the slowest start to the US M&A calendar in ten years…. Subscribe to Read MoreAlready a member? Log in here...
The serial issuer phenomenon: mastering the art of repricing An increasingly tight leveraged finance environment prompted borrowers to visit the loans market multiple times in 2024 in order to reduce pricing on their existing debt. Three rate cuts by the US Federal Reserve and increasingly tight spreads from demand outpacing supply were the main factors…
Tried and trusted approach embraced by LPs Many are expecting a recovery in private credit capital formation in 2025, but it’s the long-established direct lending strategy that’s expected to benefit most. “Higher for longer” interest rates are not good news for everyone – ask placement agents for example. These are the professionals that make their…
Distribution of MFN Maturity Carveout Horizons (Past performance is no guarantee of future results.) Contact: Steven Miller smiller@covenantreview.com
Launched Volume Source: LevFin Insights New-issue Yields Source: LevFin Insights Weekly Fund Flows Source: Lipper (Past performance is no guarantee of future results.) Contact: Robert Polenbergrobert.polenberg@levfininsights.com
Return performance of broadly syndicated loans consistently lags private credit. Source: Hamilton Lane, Bloomberg, The Daily Shot.
As we’ve noted, the banks and private credit managers occupy different places in the corporate finance ecosystem. That’s not to say, of course, that large corporate financings don’t represent real investment opportunities for the right buyers. Or that the expansion and evolution of private capital won’t lead to interesting and constructive solutions for a wide…