This week we chat with Fran Beyers, Senior Market Analyst at Thomson Reuters LPC. Thomson Reuters LPC has been a leading provider of loan market news, data and analysis for over 30 years. Fran has been with LPC since 2009 providing analysis and market commentary on the middle market.
The Lead Left: Fran, you’ve recently started closely tracking the direct lending market. That’s a great service. Tell us about this initiative and how it differs from LPC’s public middle market stats that we all subscribe to?
Fran Beyers: Yes, Randy, That’s our MM Sponsored Private Deal Analysis. Thomson Reuters LPC is well known for its league tables which form the basis for our volume and pricing stats. That’s available via our flagship product, LoanConnector. We track about $150-200 billion annually in middle market loan issuance that is either syndicated or clubbed up.
We noted last week that Deutsche Bank could soon become the widest name in the Markit iTraxx Europe if its credit deterioration continued. It came to pass perhaps sooner than many expected, with its senior five-year spreads closing at 251bps on September 26, 6bps wider than Glencore.
This is a significant development, and reflects the negative sentiment surrounding the German bank. But the movements in
The secondary market has continued to climb as the combined impact of robust demand for paper and the lack of sufficient net new deal flow puts upward pressure on loan bids. Steady CLO issuance and money entering retail funds have provided the impetus on the demand side. Month to date CLO issuance is at $7.1 billion, the highest monthly figure this year. Retail loan funds have turned
Median EV/EBITDA buyout multiples surge in 2Q 2016 for sub-$25M enterprises
Respondents to PitchBook’s most recent Deal Multiples survey reported a median EV-to-EBITDA multiple of 6.13x at the sub-$25 million EV range in 2Q 2016. That figure is nearly a turn higher than what was recorded in the first quarter of the year. One of the primary responsible factors is clearly the pressure exerted on