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...
M&A activity in the syndicated loan market is as strong as ever, however the volume is simply not coming from buyout deals. Private equity shops continue to struggle with winning and making buyout deals work given lofty valuations and extreme competition. Completed LBO… Subscribe to Read MoreAlready a member? Log in here...
Opportunity Ahead for PE? The finance community has been hit hard the past few weeks. Even long-term asset classes like venture are keeping tabs on short-term fluctuations in the market. Private equity doesn’t seem as concerned, and shouldn’t be. The biblical seller’s market that began in… Subscribe to Read MoreAlready a member? Log in here...
We remarked last week that emerging markets could face a difficult time ahead. Well, we didn’t have to wait long before the early maneuvers in a possible currency war had an impact on sovereign CDS spreads. Vietnam was one of the first to move by devaluing its currency and widening the trading… Subscribe to Read
It’s become common knowledge (and maybe conventional wisdom) that PE buyers are much more disciplined today than they were in 2007. One useful comparison is the amount of PE capital spent versus the amount raised. Going back to 2011, note the correlation between the two totals and how little they deviate from one another. This suggests…
There is no shortage of yield hungry investors in the middle market however second lien volume for smaller issuers has not kept pace with demand in 2015. Year to date, middle market second lien volume has only reached $1.6 billion, which is over 70% lower than the $5.6 billion logged… Subscribe to Read MoreAlready a
Back in 2010, Brazil’s finance minister Guido Mantega warned that the world was in the midst of a “currency war” in the wake of US quantitative easing. The term is now back in vogue after China made the shock decision to devalue its currency. China has a “dirty” peg against the US dollar, and the…