TheLeadLeft

Leveraged Loan Insight & Analysis

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Loans are appealing to investors because they offer a cash coupon, an interest rate hedge, security,  seniority in the capital structure and covenants.  Oh wait, did we say covenants? Our bad!  Not only is covenant lite running rampant in the loan market, but covenanted deals are also providing investors with less protection today compared to the past.  Based on leveraged deals with at least one covenant tracked by LPC via SEC filings, the amount of covenants in covenanted deals is at an all time low.

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Lead Left Interview - David Preston

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This week we speak with David Preston, managing director in the Structured Products Research group at Wells Fargo Securities. David covers CLOs, CDOs and Commercial ABS, and publishes a widely-respected report, The CLO Salmagundi. The Lead Left: David, CLOs were left for dead last year with all the regulatory pressures they seemed to be facing,…

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Numbers, Again

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“What did you learn in math class today, honey?” Picking our daughter up from her second day of an after-school program, we hoped to hear progress in our mission for her to reach coding stardom and launch the next Uber. Our four-year old made a long face, “Numbers, again,” she replied sadly. We sympathize. Hard…

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CHART OF THE WEEK

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CLO 1.0, 2.0, 3.0…and Counting  Loan securitization managers are sprinting to print new vehicles ahead of implementation of risk retention rules which are likely to inhibit future CLO formation. Sources: Thomson Reuters… Subscribe to Read MoreAlready a member? Log in here...

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MARKIT RECAP

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Credit investors will remember the summer of 2012 as the turning point of the eurozone sovereign crisis. Mario Draghi’s “whatever it takes” intervention caused a decisive shift in sentiment and triggered a long rally that has lasted to this day…. Subscribe to Read MoreAlready a member? Log in here...

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CHART OF THE WEEK

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Coming Attractions Lower interest rates have this year pushed cash into junk bond mutual funds and out of loan funds, though the velocity for both is slowing. Additional Sources: S&P, Forbes… Subscribe to Read MoreAlready a member? Log in here...

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THE PULSE OF PRIVATE EQUITY

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Private equity is very much a global beast. As such, when thinking about deal activity trends, it is increasingly important to be aware of what is happening beyond U.S. borders. The largest private equity market outside of North America is,… Subscribe to Read MoreAlready a member? Log in here...

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