Need timely market data and expert commentary to share with your clients? Download our State of the Capital Markets presentation! As a subscriber to The Lead Left, you’ll get: Review of Current Market Conditions Analysis of Capital Markets Metrics Including Covenants, Pricing, Loan Volume, & Leverage Review of Credit Quality Outlook for Third Quarter 2016
The parlous condition of the European banking system keeps coming back to haunt the global economy, with the latest attack of lurgy coming from Brexit. The UK electorate’s vote to leave the EU has laid bare the weak credit quality of lenders, a state of affairs that needed little revealing. Markit’s iTraxx Senior Financials index,…
Improved market sentiment boost 2Q16 leveraged market; Opportunistic deals resurface The market volatility that emerged at the tail end of 2015 and seeped into 1Q16, eased in 2Q – at least until the Brexit vote – allowing lenders to step back to assess their pipelines against the back drop of a stronger high yield bond…
Contact: Steven Miller smiller@covenantreview.com
The onset of renewed market volatility last week reminded credit participants that exogenous events do impact prices and new issuance, though to differing degrees. Broadly syndicated loan and high-yield bond markets both saw price declines in secondary trading. But new junk issuance slowed to a crawl after the Brexit vote, while loan activity continued uninterrupted. This…
The decline in US private equity activity deepens US private equity activity continues to fall. Even if Q2 numbers are revised upward as time goes on, with additional datapoints backfilled, a quarter-over-quarter decline will still have occurred in the first half of 2016. As of early July, completed deal count for Q2 is more in…
Almost two-thirds of middle market leveraged loans have two or more maintenance covenants; only 2.5% of middle market loans are cov-lite. US middle market covenant counts Source: Thomson Reuters LPC; SEC Filings
This week we chat with Michael Babiarz of Clayton, Dubilier and Rice. Michael is a partner of the firm and been with CD&R since 1990. The Lead Left: Michael, you’ve been with CD&R for 26 years. Tell us how the firm has evolved? Michael Babiarz: In many ways, we still operate with the mindset that…
Private Debt Fundraising Shows Signs of Acceleration in Q2 Preqin’s quarterly fundraising update on the private debt industry finds that Q2 showed healthy signs of acceleration, boosting hopes the industry will return to the record fundraising levels seen over the twelve month period between Q4 2014 and Q3 2015. Over the quarter, 28 vehicles… Subscribe
????Click for a larger image.