According to Thomson Reuters LPC’s year-end survey, the majority of buyside and sellside institutions surveyed estimated that roughly 40% of managers had a Risk Retention solution in place. Maybe not quite put the structure and funding in place but as we approach December 24th, managers have not just been evaluating the various solutions out there,…
Another year of record PE distributions back to LPs? 2014 saw a mammoth $463.6 billion returned back to limited partners by private equity fund managers, capping off several years of steady increases in the annual total of distributions. But at $342.0 billion through the end of September, PE distributions in 2015 already look set to…
Securitised peer-to-peer loans see risk escalate Recent troubles at Lending Club have only compounded risk in the peer-to-peer credit market P2P backed loans were introduced in 2014 and saw spreads fall to lows in mid-2015 Average spread on senior P2P loan backed securities has widened 76% since last October Markit Liquidity score among P2P securities…
Downward flexes continue at the forefront of flex activity so far in May. There have been three times more downward price flexes than upward price revisions this month. However, with nine downward flexes so far, May is trailing the 24 price cuts tracked in April. Terms continue to favor issuers this quarter, and at 33…
Recent PE Funds Have a Head Start As is to be expected, private equity funds of all vintages and geographies see their average distributed-to-paid-in multiples climb over time, as managers successfully liquidate even aging holdings after years of operational enhancements. The rates of increase in DPI multiples by vintage, however, can be split into two…
European hybrid bonds continue to underperform Idiosyncratic risk in the European corporate hybrid bond sector has seen new issuance stall and credit spreads rise. European Hybrid bonds have underperformed their senior counterparts over the last year Idiosyncratic risk has been key driver, with Volkswagen and Total seeing spreads widen Markit iBoxx EUR Liquid High Yield…
Assets under management (AUM) increased in April for both U.S. CLOs and retail loan funds. CLO AUM edged up to $430 billion, while loan mutual funds & ETFs AUM increased to nearly $112 billion. Over the past year, CLOs and retail loan funds have experienced contrasting fortunes. In that time period, U.S. CLO AUM is…
Larger PE Funds Continue to Realize Gains at Longer Horizons From the one-year mark to the 10-year, the horizon internal rates of return (IRRs) of private equity funds worldwide gradually advance from 8.2% to 13.1%. Breaking down fund performance by size bucket yields further insights, most notably that on a sufficiently long time horizon, funds…
iTraxx net notional spikes post-ECB QE decision The prospect of the ECB buying up corporate bonds, potentially squeezing supply in the sector, has meant investors have looked for alternative ways to take on risk exposure. Markit iTraxx Europe Main index has seen its 5-yr CDS spread tighten to 77bps, from 91bps Net notional outstanding on…
U.S. PE firms pull back in Canada Last year saw a decade high of 201 U.S.-headquartered private equity firms invest in Canada, far outstripping the 129 domestic firms that were active in the same timeframe. Through the end of 1Q 2016, however, U.S. and Canadian PE firms are nearly evenly matched. This equalizing occurred as…