We noted last week that Deutsche Bank could soon become the widest name in the Markit iTraxx Europe if its credit deterioration continued. It came to pass perhaps sooner than many expected, with its senior five-year spreads closing at 251bps on September 26, 6bps wider than Glencore. This is a significant development, and reflects the…
The secondary market has continued to climb as the combined impact of robust demand for paper and the lack of sufficient net new deal flow puts upward pressure on loan bids. Steady CLO issuance and money entering retail funds have provided the impetus on the demand side. Month to date CLO issuance is at $7.1…
Median EV/EBITDA buyout multiples surge in 2Q 2016 for sub-$25M enterprises Respondents to PitchBook’s most recent Deal Multiples survey reported a median EV-to-EBITDA multiple of 6.13x at the sub-$25 million EV range in 2Q 2016. That figure is nearly a turn higher than what was recorded in the first quarter of the year. One of…
Average Private Debt Management Fees by Fund Type Negotiating appropriately structured fund terms and conditions has long been a key issue for investors across the alternative assets industry. While investors are generally happy with the performance of the private debt industry, in Preqin’s H2 2016 Investor Outlook just 60% of respondents stated that they felt…
Having the distinction of being the widest constituent in the Markit iTraxx Europe is clearly one that most companies would prefer not to have. Yet Glencore has held this dubious honour since the last index roll in March and beyond. It had a challenger in fellow miner Anglo American, but Anglo’s downgrade to junk and…
Lender Survey: Are you seeing cracks in your portfolio? Yes, we are seeing signs of cracks in credit quality in our portfolios, said roughly 35% of the attendees gathered at the Marriott in Times Square for Thomson Reuters LPC’s 22nd Annual Loan & CLO Conference on Thursday. While these respondents said some companies are falling…
The Private Debt Universe in Asia-Pacific Preqin’s Private Debt Online tracks 152 Asia-Pacific-based private debt fund managers, of which 32 are located in Hong Kong, the most of any country. However, with regulators such as the Securities and Exchange Board of India requesting the Reserve Bank of India to ease regulations on Alternative Investment Funds (AIFs), there…
Recent consumer-focused PE vintages have a ways to go Consumer spending has been on the rise, but private equity managers of youthful consumer-focused funds still have a ways to go when it comes to either increasing overall value or realizing gains. The median fund of the 2010 vintage, for example, has a total-value-to-paid-in (TVPI) multiple…
Credit risk has awakened from its summer slumber over the last couple of days with the CDX IG and iTraxx main now trading 8 and 11% higher than their close on Thursday. While it’s still too early to see whether this latest surge is a passing event or a longer lasting trend both indices are…
Nearly half of U.S. CLOs see weighted average bids on underlying assets climb to 97 or higher The upward trend seen in secondary loan bids is mirrored when tracking all the assets held by CLOs in LPC’s Collateral database. Through mid-February, bids on loans held by CLOS had been grinding down in line with other…