Fed Survey: 10% of banks reported tightening terms The majority of banks surveyed reported little change in the last three months with only one domestic bank reporting easing terms to larger firms, according to the latest Federal Reserve Senior Loan Officer Opinion Survey. This is down from 13%… Subscribe to Read MoreAlready a member? Log
Flex activity continued to favor issuers in July Market sentiment in July was more of the same in the leveraged institutional market. Although deal flow thinned out from a swell of volume in June, negotiations continued to favor issuers. Thomson Reuters LPC’s Flex Factor scored a -0.04 for July,… Subscribe to Read MoreAlready a member?
The PE-backed LBO market continued to remain inflated and aggressive in 2Q16. The average purchase price multiple on large corporate LBO deals was elevated at 11.3 times while middle market deals also saw lofty valuations at 9.7 times. Historically middle market LBOs exhibited average purchase price multiples closer to… Subscribe to Read MoreAlready a member?
The spectacular turnaround in sentiment in the leveraged market resulted in a 137% jump in refinancing activity in the second quarter, reaching US$112bn, up from US$47bn in the first quarter and the highest since 2Q15’s US$165bn. With cash build-up from repayments, investors who had been sitting on the sidelines in the early part of the…
U.S. CLO assets under management (AUM) climbed to $434 billion in June on the back of further new deal flow. Issuance increased to $6.6 billion (15 deals) in June from $5.4 billion (13 deals) in May. This brought first half 2016 issuance to $26.2 billion (62 deals), which is down sharply from $60.4 billion (115…
Improved market sentiment boost 2Q16 leveraged market; Opportunistic deals resurface The market volatility that emerged at the tail end of 2015 and seeped into 1Q16, eased in 2Q – at least until the Brexit vote – allowing lenders to step back to assess their pipelines against the back drop of a stronger high yield bond…
Supported by solid technicals and a steady – if uninspired – pipeline of deals, the US loan market got a substantial boost in 2Q16 to push over US$550 billion in loan volume through the market and logging nearly US$905 billion of total issuance during the first six months of the year. Coming off a slow…
Survey: Where are we in the credit cycle? Thirty-nine percent of buyside and sellside institutions in the room at Fitch Ratings and Thomson Reuters LPC’s Loan & CLO Conference last Thursday felt that we are already headed into a correction and in the late stages of the credit cycle, up from just 4% in both…
Secondary market oil and gas loan prices have continued to climb recently in tandem with higher oil prices. Oil and gas loans are now up over 16 points from their February low, though their average bid is still a relatively low 70 cents on the dollar. There is also a wide variation in prices across…
Large arrangers have gained enough confidence to arrange and syndicate second lien facilities this quarter in the leveraged loan market. So far in 2Q16, US$2.4bn in second lien tranches have closed, a 60% improvement from the US$1.52bn last quarter. And several second liens have even been used to finance dividend recaps – a testament to…