Private Debt Performance Spurs Potential Inflows The private debt industry has only become a mainstay of many investors’ portfolios relatively recently, but there is mounting evidence that the returns the asset class is providing for them are spurring investors to allocate ever-increasing levels of capital to the debt market…. Subscribe to Read MoreAlready a member?
PE Still Outperforms in the Long Run The key value-adding proposition of private equity fund managers is that they offer more stable, market-beating, safer returns across longer timelines that of course lead to relative illiquidity. And thus far, PE managers have made good on that value proposition. In addition to tracking vintage PE funds against comparable…
Emerging market economic growth managed to hang on to much of its momentum over August according to the latest release of the IHS Markit Emerging Market Composite PMI index. The August reading indicated that emerging market economies stayed in expansion territory for the third month in a row for the first time since the spring…
Issuers largely continue to win out on flex, but investors are pushing back on riskier credits Similar to previous months, flex activity in August continued along the path of being mostly a borrower friendly market. Thomson Reuters LPC’s Flex Factor scored -0.6 in August, the fifth straight month in issuer friendly land. The Flex Factor…
PE Fund Sizes Spike in 1H 2016 Across North America and Europe, both mean and median private equity fund sizes spiked in the first half of 2016. The average fund size came in at $803.9 million, just shy of the decade-high $838.9 million notched in 2007, while the median just barely set a new high…
Is the Italy-Focused Private Debt Industry Set for Growth? The Italy-focused private debt market remains in its infancy – only 13 funds focused on the country have closed since 2004 raising a total €2.6bn – however recent legislative changes announced by Italian Prime Minister, Matteo Renzi, may be about to accelerate growth in the country….
The Bank of England’s (BoE) revamped quantitative easing (QE) program hit an early snag last week when the central bank failed to source enough gilts on just the second day of purchases. This early setback has caused some to question the impact of the bank’s actions on the corporate bond market, and whether the bank…
HY E&P Trailing 12-month default rate surpasses 31% There was $5.2 billion of U.S. high yield bond default volume in July, pushing the trailing 12-month (TTM) rate to 5.1% from 4.9% at the end of June, according to Fitch Ratings. Halcon Resources Corp.’s long-awaited bankruptcy comprised… Subscribe to Read MoreAlready a member? Log in here...
Private Debt Investors Target Europe Despite recent lacklustre fundraising activity, the private debt industry continues to attract investors, due to the uncorrelated returns and regular income stream offered by the asset class. Ninety-four percent of private debt investors expect the size of the industry to increase over the next five years, with over a quarter…
What does PE’s capital overhang portend? Through the end of 2015, the private equity industry in North America and Europe had an overhang of no less than $749.4 billion. A plurality of that is concentrated in funds of the 2015 vintage, with a majority—55%—in funds closed in the past two years (funds return data is…