Middle market volume showed a dramatic decline in 3Q15. Loan issuance only reached $27.4 billion, a 36% drop quarter-over-quarter and a 42% drop year-over-year. Non-sponsored issuance showed the biggest drop off as issuers clearly became spooked by broader market volatility and a fear of a global macroeconomic slowdown. … Subscribe to Read MoreAlready a member? Log in
Eastern Europe is generally viewed by credit investors as one of the safer segments of increasingly shaky emerging markets asset class. But the aggressive presence of Russia poses risks, as its neighbours know all too well. On September 23rd the Republic of Ukraine failed to pay principal on its $500m 6.875% coupon bond. A drawn…
US Leveraged lending tumbled in 3Q15 as market volatility fueled a flight to quality and heightened risk aversion. At less than $180 billion, 3Q15 leveraged lending was down nearly 50% compared to 2Q15 totals to bring 1-3Q15 totals to $753 billion, down 24% compared to the same time last year. Most of the shortfall was rooted…
Median Multiples for U.S. PE Wane Further Even taken with a grain of salt, the decline in median EBITDA multiples for U.S. private equity buyouts has become more and more pronounced as third quarter numbers roll in. Faced with the headache of high valuations, PE firms have not only been dialing down activity—albeit at a…
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...