You Can Take it With You

Years ago the humorist Robert Benchley was traveling in Italy on summer vacation. Upon arriving in Venice, he cabled his agent: “Streets flooded. Please advise.”

In a similar vein, leveraged loan investors should not be surprised at effects of ample liquidity flowing through credit markets today.

As we head into the second quarter’s final weeks, it’s clear sponsors and lenders aren’t slowing down in their drive to deploy dollars. It’s evident competitive juices haven’t dried up either. Whatever structure, term, price, spread, or covenant that needs to be stretched to win a deal, will get stretched.

In some cases, features typically reserved for the best and biggest issuers are coming down market to smaller mid-cap companies...

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Quote of the Week

“The world confused a lucky confluence of growth factors with a self-feeding synchronized pickup.” – Mohamed El-Erian, chief economic advisor, Allianz.

Chart of the Week: Converge This

For the first time since 2008 the universe of leveraged loans has exceeded that of high-yield bonds.

Lead Left Spotlight

Peter Magas

Managing Director

Beecken Petty O'Keefe & Company

"Demographics suggest continued demand for healthcare services and the provider base cannot keep pace."

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Mark Habner

Co-Founder & CEO

BeckWay Group

"Individuals within a company truly make the difference in performance and excellence, not the company itself."

Read Interview

Rod Rivera & David Baker

Managing Directors

Capstone Headwaters

"Value-based care is definitely the theme of the day."

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Andrew Welch

Managing Director

Revelstoke Capital Partners

"We believe scale matters, particularly in healthcare."

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Bram Smith & Lee Shaiman

Outgoing and Incoming Executive Director

LSTA

"Despite the financial crisis and a sharp pricing drop, loans and CLOs actually performed as promised."

Read Interview

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Features

Markit Recap – 6/11/2018

In the political sphere, Europe and North America appear to be going on separate ways since the election of Donald Trump, as was evident in the recent G7 talks. In the credit world, however, they are closely correlated, reflecting the global scope of corporates on both sides of the Atlantic....

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Leveraged Loan Insight & Analysis – 6/11/2018

AT&T legal ruling bodes well for M&A deals; Loan market backs over US$200bn in 2Q18 The debt capital markets are feeling good about M&A and more specifically, the unabated surge in large transformative acquisition deals. Total M&A transactional volume so far is up 39% year over year through June 11 and the highest level since

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The Pulse of Private Equity – 6/11/2018

The pros and cons of long-dated funds Download PitchBook Report here Private equity moves at a glacial pace. While the average shelf life of a PE fund is often assumed to be eight to ten years, many funds require considerably more time to wind down. PitchBook data shows that it takes between 11 to 14

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PDI Picks – 6/11/2018

Can Asia Pacific make a breakthrough? The region has been characterized by modest overall fundraising totals boosted by occasional mega-funds, but there is hope that this year may be different. Looking at fundraising data for the Asia-Pacific region over the last four-and-a-half years does not appear to provide much encouragement: 2015 saw almost $8.5 billion

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Private Debt Intelligence – 6/11/2018

Private Debt and Public Market Performance A key issue for investors when evaluating the performance of their private debt investments is the correlation to public markets. Part of the appeal of private debt is its low correlation to other asset classes, as well as its long-term and illiquid nature. As such, though, it makes accurately

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Middle Market Deal Terms at a Glance

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State of the Capital Markets – First Quarter 2018 Review and Second Quarter 2018 Outlook

Review of Current Market Conditions/ Analysis of Capital Markets Metrics/ Review of Credit Quality/ Outlook for Second Quarter 2018

Special Report: Spot-lite on Cov-lite

Beginning in October 2017 The Lead Left published a series of articles on covenant-lite. This report consolidates those articles.

State of the Capital Markets – Fourth Quarter 2017 Review and First Quarter 2018 Outlook

Review of Current Market Conditions/ Analysis of Capital Markets Metrics/ Review of Credit Quality/ Outlook for First Quarter 2018