2014 CLO issuance sits well over $50 billion so far this year. With more than $10 billion in CLOs pricing in each of the last three months, analysts dialed up their expectations for issuance for the year. … Subscribe to Read MoreAlready a member? Log in here...
Loans are appealing to investors because they offer a cash coupon, an interest rate hedge, security, seniority in the capital structure and covenants. Oh wait, did we say covenants? Our bad! Not only is covenant lite running rampant in the loan market, but covenanted deals are also providing investors with less protection today compared to the past. Based on leveraged deals with at least one covenant tracked by LPC via SEC filings, the amount of covenants in covenanted deals is at an all time low.
The long awaited pick-up in M&A-related lending is finally making a comeback this year. The second quarter has seen many deals coming to market and many others are in the works, bringing much coveted M&A loans into market…. Subscribe to Read MoreAlready a member? Log in here...
The middle market yield premium on first-lien institutional term loans has dropped to just 66bp this quarter; its lowest level since 3Q09. The large corporate market has seen demand and supply re-balancing as more new money deals come to market while at the same time retail inflows reversed for a few weeks. As a result, at…
CLO issuance remains strong thanks to a broadening and growing AAA investor base and a growing number of first time managers. So far this year, almost $41 billion of CLO paper has been issued,up from the $33 billion issued through at this time last year. Dealing with a softer secondary, the average bid on the…
The average large corporate LBO debt to EBITDA level was 6.24 times in 1Q14, up from the 6.21 average seen in 2013. In 1Q14, the average multiple increased to 9.7 times from 9.3 times last year while equity contributions averaged 33.3%. Heading into 2Q14,… Subscribe to Read MoreAlready a member? Log in here...