Valeant Pharmaceuticals, the most widely held name in U.S. CLOs, announced last week it was cutting its revenue forecast and that a delay in filing its annual report put the company at risk of defaulting on its debt. In response, Valeant’s shares plunged by more than 50%. The company’s loans ended Tuesday with a weighted…
The equity, bond, and loan markets have all rebounded from their February lows as investor sentiment has improved. Multi-quote institutional loan bids are now at 92.24, up from a low of 90.48. High yield bond prices have posted a relatively bigger bounce, jumping 6 points from their low in February to an average of 90….
Just shy of three months into 2016, CLO issuance remains stalled, logging less than US$3 billion in new vehicles through the end of February. This represents an 80% drop compared to the same time last year. More notably, only a few days into March, a single CLO has come to market via a US$406.75 million…
Flex activity in the leveraged loan market amped up in February as market volatility continued and lenders tried to push deals through that had been shelved since last year. Thomson Reuters LPC’s Flex Factor, which aggregates price and structural flex activity to gauge investor sentiment, increased to an average score of 3.2… Subscribe to Read
Despite significant market volatility, PE shops are moving full speed ahead on select mega deals in 2016. While the dataset is still limited, the average purchase price for large corporate buyout deals so far in 2016 has skyrocketed to US$5.8bn, up from just US$1.8bn in 2015 and surpassing the US$5.1bn record set in 2007…. Subscribe
Discounts on first-lien institutional term loans haven’t been this wide since 2011. The average original issue discount (OID) is 98.02 so far this quarter, almost on par with 4Q15’s 97.98 average. Only 13% of first-lien institutional term loans have been done at an OID of 99.5 or narrower this quarter, slightly down from 16% last…
Despite hopes that 2016 would start off on stronger footing than 2015 closed, market volatility intensified in January. The Merrill Lynch HY Cash Pay Bond Index continued to demonstrate substantial downward pressure driven by macro volatility rooted in global growth prospects. Average bids hovered south of 86.5 by the end of last month, down from 89.16…
January CLO issuance down dramatically year over year CLO arrangers logged a mere 2 new issues totalling less than US$830 million in January 2016. This was down significantly compared to the year ago period during which over US$5 billion in new CLO vehicles were completed via 9 issues. The slowdown of CLO… Subscribe to Read
Libor floors, used to guarantee a minimum spread to investors in a low rate environment are now a major theme in the market given rising interest rates. In 2015, 98% of institutional term loans were issued with a Libor floor, the bulk of which were done… Subscribe to Read MoreAlready a member? Log in here...
Middle market lending failed to impress in 2015 as both the sponsored and non-sponsored markets were down roughly 30% year-over-year. In the non-sponsored market, volatility spooked issuers in the second half of the year causing many to hold off… Subscribe to Read MoreAlready a member? Log in here...