The percentage of LBO deals with leverage levels greater than six times has returned to 2007 levels. So far in 2014, LPC tracked 46 LBO deals (where deal details were available) or 57% of the total with total leverage greater than the regulators’ benchmark 6… Subscribe to Read MoreAlready a member? Log in here...
Argentina’s interminable struggle with bondholders continues, but at least one element of the saga has reached a resolution. The credit event auction was held on September 3, and the final price was determined as 39.5. As we can see from the chart,this was in line with market expectations. Markit’s composite recovery rate was around 40%…
Going back several quarters, larger PE funds have performed better than smaller funds, generally speaking. Funds of at least $1 billion outpaced smaller size buckets across the 1-, 3-, 5- and 10-year IRR horizons through 4Q 2013,… Subscribe to Read MoreAlready a member? Log in here...
The average yield assuming a three year term to repayment, on first-lien institutional tranches is at 5.56 percent so far in 3Q14, up from 5.17 percent in 2Q14. Moreover, 30 percent of first-lien term loans have priced at a yield of 6 percent or above,… Subscribe to Read MoreAlready a member? Log in here...
Russia and India have long had a close relationship, going back to the days of Nehru and Khrushchev. But, though links between the two countries remain tight, the same can’t be said of their relative creditworthiness…. Subscribe to Read MoreAlready a member? Log in here...
PE Firms Pumping out the Cash U.S. PE firms distributed about $98 billion more back to investors than they called down in 2013. Total distributions amounted to $232.5 billion last year, a ten-year high and 3% increase over total distributions in 2012. While distributions increased in 2013,… Subscribe to Read MoreAlready a member? Log in
On the back of increasingly unsettling global headlines, the capital markets took a beating earlier this month. As the equity markets tumbled, the US high yield bond market likewise saw skittishness culminating in an outflow of over $7 billion during the week of August 6 alone,… Subscribe to Read MoreAlready a member? Log in here...
The micro issues of Argentina and Banco Espirito Santo have garnered most of the attention in the CDS market of late, but as the summer draws to a close the discourse is shifting back to the macro picture. On the face of it, the change in focus could be a negative development. The eurozone economy…
Global volatility has spread down to the leveraged loan market and investors are pushing back. Twenty one first-lien institutional term loans have flexed up in the first half of August, just one shy of the total for the months of April and May. On the flipside, only four first-lien term loans have flexed down, dramatically lower than…
Secondary Buyouts – An Obvious Solution The above graph suggests that 2014 is set to decline in terms of secondary buyout deal (SBO) flow. If the pace set in the first half of the year continues, this year would represent an 11% fall from the robust 2013 levels…. Subscribe to Read MoreAlready a member? Log