Whitecaps in Large Caps
Issuers in leveraged lending today are divided into three categories: the haves, the have-nots, and the wish-they-hads.
As the 2019 loan calendar heads into its final six weeks of activity, the differences between the first two categories are becoming more pronounced.
In the broadly syndicated market, as we covered last week, the combination of triple-C anxiety among CLO managers and cash out-flow worries with retail funds have impelled a flight-to-quality. Better rated issuers in defensive sectors are the haves; challenging “story” credits are only getting done with investor-friendly tweaks...
Manufacturing exits are way down We covered China-driven M&A last week, noting that activity has taken a nosedive this year. Chinese acquirers aren’t buying many American companies at the moment, thanks in part to the broader trade war. According to a newly released report from PitchBook and RSM, however, PE is having a rough timeView Article
Infrastructure Debt Reaches Momentum Debt providers in more specific sectors have started to take the place of traditional lenders, as for example in the infrastructure industry. Banks are no longer the main source, and investors are moving towards funds to gain access to the capital structure. Infrastructure debt fundraising has had peaks and troughs overView Article
Average US second-lien secondary bids at lowest levels since 2016 US second-lien loans have traded down considerably in the secondary market over the past few months. The last round of risk-off behavior by secondary market loan players sent second-lien bids as low as the 87.01 level on October 18th, over a five-point decline from theView Article
Total leverage on large corporate US LBO loans remains high in 4Q19, but senior leverage declines At a time when investors have been pushing back on pricing and structure on riskier loans, total leverage on US LBO deals remains high. So far this quarter the average total debt to EBITDA level for large corporate LBOView Article
China-driven M&A isn’t happening this year Download PitchBook’s Report here. North American M&A activity involving Chinese buyers has fallen off a cliff this year. That’s not a complete surprise, but it’s not often you see such swift drop-offs without something alarming going on. According to PitchBook’s just released North American M&A Report, China-driven M&A is onView Article
In June 2019 The Lead Left published a series of articles on private debt. This report consolidates those articles.
Review of Current Market Conditions/ Analysis of Capital Markets Metrics/ Review of Credit Quality/ Outlook for Fourth Quarter 2019
In May 2019 The Lead Left published a series of articles on covenant trends. This report consolidates those articles.