Credit market veterans are all too aware that the determination of CDS credit events is far from straightforward. This can be seen as a weakness of the product, but it is difficult to avoid given the irregularity of bond contracts and the smorgasbord of insolvency laws across different jurisduictions. The case of Astaldi is a…
Foreign investment in the spotlight Download PitchBook’s Report here. Foreign PE investment in US-based companies has been strong going back to 2014. And consistent. Since 2014, non-US investors were involved in about 12% of all US-based PE investments per year. The US private equity market is easily the most developed market available, and while the European…
The importance of explaining Brexit Brexit makes a majority of LPs nervous about European credit markets, according to a PDI survey. Investors may have had almost two-and-a-half years to process and prepare for the UK’s departure from the EU, but that doesn’t mean they aren’t still wary of the end result, data from a PDI…
Private Debt Fundraising Slows in Q3 Q2 2018 was the third-largest fundraising quarter ever seen for private debt, as 36 funds secured a combined $42bn. This pace of fundraising has not been maintained in Q3, with 31 funds closed in the quarter raising a total of $24bn. However, funds closed in the first three quarters…
We noted last week that the markets may be guilty of complacency on Italy’s budget, and so it proved. As mooted in the initial spending plan, an increase in the budget deficit to 2.4% was proposed by the government, significantly higher than the 2% limit specified by the European Commission. This was tempered by the…
Leveraged loan volume tumbles in 3Q18; Arrangers back end jumbo deals to September Despite the strong market technicals which continued to define the US loan market, 3Q18 leveraged loan volume tumbled 57% quarter over quarter with US$176.6bn of assets completed in retail syndication. Some of this was not altogether surprising given the traditional slowdown during…
PE fundraising trending down Download PitchBook’s Report here. The PE fundraising trail hasn’t been too difficult to navigate lately. For one, most newly raised funds are larger in size than their predecessors. About 69% of the funds that closed last year were larger than their predecessors, and the percentage was even higher for 2016 vintages—76%. Moreover,…
Chasing special returns A poll asked our New York Forum audience to name the most promising strategy over the next year. It produced an interesting answer. “Predicting the end of the cycle is very difficult, if not impossible.” So said Cliffwater CEO Stephen Nesbitt in his introductory remarks as day one chair of our New…
Will Europe Direct Lending Activity Outpace North America? Direct lending is a relatively young strategy, but has gained traction in the past five years or so, quickly becoming one of the more dominant private debt fund types. As with the larger private debt universe, North America and Europe account for the majority of direct lending…
The appeal of populist, often nativist agenda to electorates disgruntled with economic stagnation and rapid demographic change has been underestimated in recent years, not least by bond markets. Nonetheless, the performance of Italy’s credit spreads over the summer suggests investors are reluctant to wholly embrace political risk aversion…. Subscribe to Read MoreAlready a member?