After COVID, the elections, and what the fifth instalment of the Scream series will be called (hint: it’s not Scream 5), the topic getting the most attention from our readers is the ramp-up of SPACs, or special purpose acquisition companies.
By definition, these vehicles are publicly traded shell companies with investor cash as their only initial asset. The sponsors then have two years to merge with a target company before the vehicle would have to unwind and return the cash.
A creature of the 1990’s, SPACs were designed to help smaller businesses access public equity. After the tech bubble burst, and again following the Great Recession, the popularity of SPACs declined...
“It’s been something to write home about. There has been a real rush into risk over the last week.” – Jerry Cudzil, head of credit trading, TCW.
Featuring Charts
Chart of the Week: SPACtacular
Market volatility and dry powder pushed special purpose acquisition company activity to record levels.
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Chart of the Week: Junk Pile
With data reported only through Oct 7, high-yield bond volume has already reached record levels.
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Chart of the Week: Coronacoaster
With colder weather and lax safety measures, new COVID-19 cases have accelerated.
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Chart of the Week: Devalue Proposition
Purchase prices as multiples of borrower ebitda have slumped this year across the middle market.
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Chart of the Week: Risk Dispersion
As the COVID-19 crisis took hold, leverage distributed more widely by borrower ebitda.
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Chart of the Week: Finding Private Debt
The number of private debt funds raised globally slumped in the third quarter, but has generally held steady.
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Features
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View ArticlePrivate Debt Intelligence – 11/16/2020
Fund Manager Views on the Importance of Debt Lenders in the Next Five Years Private debt firms have stepped into a gap left by banks after the Global Financial Crisis and are focused on lower-risk credits. More than 30% of fund managers surveyed by Preqin for Future of Alternatives 2025 believe banks will be less
View ArticlePDI Picks – 11/16/2020
The pain is yet to come Plenty of capital has been raised in anticipation of a distressed opportunity that may take a while to materialise. Distressed debt has been a major focus for investors in recent years, as can be seen from our chart above. Although fundraising this year has been dealt a setback by
View ArticleLeveraged Loan Insight & Analysis – 11/9/2020
LBO leverage multiples stay aggressive in 4Q20 After remaining extremely light the past two quarters, LBO activity has picked up, as private equity sponsors are putting more money to work. Through the end of last week, there was US$16.5bn in completed US LBO volume, 19% higher than year-ago levels....
View ArticleMiddle Market Deal Terms at a Glance
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Review of Current Market Conditions/ Analysis of Capital Markets Metrics/ Review of Credit Quality/ Outlook for Fourth Quarter 2020
Beginning in June 2020 The Lead Left published a series of articles on post-pandemic healthcare. This report consolidates those articles.
Beginning in May 2020 The Lead Left published a series of articles on high yield bonds. This report consolidates those articles.
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