In recent years, the credit markets have become accustomed to volatility, despite the best efforts of central banks to tame the beast. But where it was sovereigns and banks that were the instigators during the crises of 2007-2012, in 2015 it is the commodities sector that is providing the oscillations. Nowhere was this more evident…
Volatility returned to the loan market in 3Q15 to contribute to a deeper and more sustained summer slowdown which saw just over $401billion of issuance work its way through syndication. This marked a decline of nearly 29 percent compared to 2Q15 figures and an 11 percent drop compared to the year ago period. Similarly, at less than $1.4…
Overall Optimistic, Investors See Choppiness Ahead Private equity firms typically target companies that are in trouble. It’s the heart of the traditional buyout model, which, although shifting as the industry matures, remains the core of PE dealmaking. However, the relative health of target companies can shift considerably depending on overall deal trends—nowadays is no exception….
German corporate credit, generally regarded as a safe bet, has had a torrid time of late. Last week we looked at how the costs of transitioning from nuclear to clean energy had inflicted damage on German utilities and sent credit spreads spiralling wider. This week it was the turn of the auto industry, and Germany’s…
After a busy first half of the year, CLO issuance has been relatively muted in the 3rd quarter, recording $15.5 billion of new CLO paper so far, that is, half the volume recorded in each of the first 2 quarters of the year. Year-to-date volume stands at $76 billion, down from the $94 billion recorded at the…
With High Valuations Persisting, PE Buyers Still Cautious PE dealmakers are still grappling with increased regulatory scrutiny and stubbornly persistent high valuations. The chance to ameliorate price pressures still remains, with lending markets left wide open by ongoing competition… Subscribe to Read MoreAlready a member? Log in here...
The sharp fall in commodity prices over the past 12 months has placed the energy sector under increased scrutiny from credit investors. But it tends to be exploration and production firms, as well as mining companies, that have borne the brunt of negative sentiment. Utilities often benefit from lower prices in raw materials, and their…
While the debate rages on as to whether the Fed will raise rates, equities swung wildly as investors digested the impact of slowing growth in China and its potential impact on global growth. Chinese officials announced there that there could be a “more forceful” fiscal… Subscribe to Read MoreAlready a member? Log in here...
LP Direct PE Investment Signaling Shift in Industry Limited partners have been steadily dialing up direct investing over the past few years. Prominent LPs such as CPPIB and Ontario Teachers’ Pension Plan are responsible for a big portion of that increase, but the uptick in activity is unmistakable…. Subscribe to Read MoreAlready a member? Log
Brazilian bonds sink prior to downgrade Brazil’s recent downgrade to junk will come as little surprise to market observers given the increasingly bearish sentiment seen in Brazilian sovereign bonds. Brazilian CDS spreads at 371bps, twice where they stood a year ago… Subscribe to Read MoreAlready a member? Log in here...