Chart of the Week: Growing Gap
While middle market yields are range-bound, large cap spreads have been dropping fast.
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Elements of Corporate Risk (First of a Series)
Institutional investors are combing through the private credit market searching both for higher returns and experienced managers to deliver those returns. The key to understanding why some firms are targeting higher yield investments is to also appreciate the kind of credit risks those managers are taking to achieve those yields. In this special series, we’ll…
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Leveraged Loan Insight & Analysis – 4/3/2017
1Q17 M&A volume down 32% year over year as market waits on policy guidance out of Washington
M&A loan issuance declined dramatically year over year to log less than US$70Bn in 1Q17, down 32% compared to the year ago results (US$102Bn). This represented the lowest quarterly results since 1Q13. Although some of the market shortfall on a percentage basis should be qualified in that jumbo financings for Avago Technology and Kraton Polymers which were completed in 1Q16 were in fact structured in 2015, the market took a very real pause in 1Q17 as issuers waited on the new administration in Washington...
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Debtwire Middle-Market – 4/3/2017
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…
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Lead Left Interview – Stephen Boyko
This week we chat with Stephen Boyko of Proskauer. Steve is a partner in the firm’s corporate department and co-head of the private credit and finance groups. He represents one of the largest client rosters in the industry, including an array of specialty finance companies, private debt funds, and BDCs. The Lead Left: Steve, thanks…
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The Pulse of Private Equity – 4/3/2017
Plenty of value yet to be realized in older PE vintages
In the world of private equity, the long-persisting effects of the financial crisis are still evident, particularly when regarding fund returns from certain, most affected vintages. Funds from vintages between 2007 and 2009 inclusive still possess plenty of value yet to be realized, having taken relatively longer to build up total value to paid-in capital multiples given the effects of the crisis. In fact, the sizable disparity between what has been able to be realized thus far between funds of the 2009 vintage...
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Private Debt Intelligence – 4/3/2017
Placement Agents and Private Debt
Placement agents servicing the private debt industry have been expanding their services to keep up with the development of the asset class. In addition to their traditional role of connecting fund managers with suitable investors, placement agents increasingly offer ongoing investor relations assistance, and services to help fund managers comply with regulatory standards...
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Covenant Trends – Average Percentage Adjustments for EBITDA Reconciliation
Average Percentage Adjustments for EBITDA Reconciliation
Select Deals in the Market – 4/3/2017
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