In our just-completed series on high-yield bonds, we concluded that issuer and investor activity has largely been driven by technical factors: near-zero interest rates, the Fed’s support of fallen angels, and skewed-to-worse ratings for leveraged loans. How then should investors be thinking about the illiquid market? Private credit has a different profile than tradable assets. […]
What’s been described as “massive” new issuance in the high-yield market led to the most deal volume for May ($48 billion) since 2003, according LevFin Insight’s Matt Fuller. As our Chart of the Week depicts, cash inflows to bond funds totaled over $35 billion in the past nine weeks. That includes the top three weekly […]
We continue our special series on high-yield bonds with a look at more deals in the market, with our tour guide, Matt Fuller of LevFin Insights. Northwest Fiber came out with a loan/bond buyout of Frontier Communication assets. This could grease the skids for other regular-way LBOs. Another flagship deal was for Viking Cruises (B-/B1). […]
One of our readers asked for help deciphering what was going on in the high-yield market. So we recruited Matt Fuller from our content partner, LevFin Insights. “From the perspective of high-yield investors,” Matt told us, “it’s a great time to be involved. We were pretty much shut down in March. Total volume was only […]
The Bank of England has projected the COVID-19 pandemic will cause GDP for the UK to decline 14% this year. That’s the worst economic performance in three centuries. In 1706 (when the Bank of England was twelve years old) Great Britain was a very different place: devastated by wars and weather, the union with Scotland […]
As we wrap up our COVID series, we turn our attention to the path ahead, as unclear as that is. Or as one economist put it succinctly: “Anyone who thinks we’re going to keep moving up in a straight line is living in La-La Land.” The good news is markets have fully absorbed the shock […]
“The GFC was a crisis that began on Wall Street and spread to Main Street. COVID-19 is a crisis that began on Main Street and spread to Wall Street.” That’s how one private credit manager compared the two worst downturns since the 1930’s. With the coronavirus still in its early stages, this pandemic might end […]
If you’re watching this broadcast from your home office, you’re not alone. According to one study, 97% of the US population is either at home or sheltering in place. This has completely upended the free-flowing, dynamic nature of the largest, most diversified economy on the planet. -Industries that took decades to develop competitive products and […]
This week we wrap up our conversation with Brian Nick, Nuveen’s chief investment strategist: Q1: How do you compare this cycle with the last one (Global Financial Crisis)? Q2: The Fed did jump in pretty quickly to cut rates to zero. Are they out of weapons? Q3: Do PrivateEquity firms have any Federal rescue programs […]
As goes COVID-19, so goes the nation.” We rephrase the famous 1950’s dictum on General Motors’ relationship to the national welfare in examining how the coronavirus has hijacked all aspects of the economy. There’s broad consensus that once the disease runs its course, commercial activity will be restored. It’s also agreed that between now and […]