Chart of the Week: Spreading the Lite
Almost three of every four institutional leveraged loans lack a maintenance financial test.
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Loan Stats at a Glance – 6/12/2017
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Private Debt Intelligence – 6/5/2017
Sovereign Wealth Funds Look to Private Debt Sovereign wealth fund investors are increasingly looking to make private debt investments an element of their portfolios. The latest research from Preqin finds that the proportion of sovereign wealth funds currently investing in the asset class has increased… Subscribe to Read MoreAlready a member? Log in here...
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Markit Recap – 6/5/2017
Banco Popular Senior and Sub move in opposite directions The CoCo market received all the plaudits following Banco Popular’s enforced “rescue” by Santander yesterday. But another, more established financial instrument will also be tested by the Spanish bank’s resolution. A question was put to the ISDA Determinations Committee yesterday, asking if a restructuring/governmental intervention has…
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Leveraged Loan Insight & Analysis – 6/5/2017
U.S. new issue CLO volume outpaces refinancings for first time in 2017 May marked the first month this year where U.S. new issue CLO volume outpaced refinancing volume. CLO new issue amounted to $9.8 billion in May, slightly down from the $10.2 billion posted in April, taking 2017 issuance to $37.5 billion…. Subscribe to Read
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Covenant Trends – Average Free-and-Clear as a Multiple of Pro Forma Adjusted EBITDA
Contact: Steven Miller smiller@covenantreview
Debtwire Middle-Market – 6/5/2017
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 comprises…
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The Case for Covenants (Part Three)
At a recent debt conference we did what most of our direct lending colleagues are doing these days: complain. Speaking with one long-time practitioner, we mentioned a middle market transaction which was both cov-lite and ebitda adjustment-heavy. “Yeah, it’s ridiculous,” he said. “But it’ll get done.” Therein lies the problem. As we discussed last week, loan…
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Chart of the Week: Pro Forma This
The difference between reported and adjusted ebitda for all M&A related loans has expanded to over 30%.
