Chart of the Week: Alpha Bets
CLO asset and liability spreads move in concert, down now below pre-Covid levels.
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CLOs Revisited – Ratings, Risks, and Returns (Third of a Series)
By blocking the Suez Canal last month, the Ever Given made headlines and created a massive shipping traffic jam. Three football fields long and weighing 250 thousand tons (by comparison, the Statue of Liberty is 125 tons), the monster container vessel represents the new global transportation reality: 90% of the world’s goods travel by sea….
PDI Picks – 4/5/2021
Will a lack of fuel derail private debt in the UK? A new survey highlights the importance of private debt in the UK market. But there are concerns over the weakness of fundraising. In the UK, private debt is now playing a “vital role” in the provision of finance to the country’s SMEs according to…
Debtwire Middle-Market – 4/5/2021
Borrowers and sponsors alike capitalize on opportunistic loan market Source: Debtwire Par Opportunistic deals have continued to flood the loan market in March, as a lack of new loan supply has allowed borrowers and sponsors alike to capitalize on investor appetite for paper. Of the USD 93bn of institutional loans to price in March, only…
Loan Stats at a Glance – 4/5/2021
Contact: Marina Lukatskymarina.lukatsky@spglobal.com
CLOs: A Vehicle Inspection Report
“Anytime loan market technicals shift, there’s always a view that CLOs are the end of Western civilization as we know it.” That’s what a top CLO manager told us about his experience over several decades. Regardless of actual performance, CLO’s regularly get hauled out by the media for reckless behavior associated with“risky loans.” Back in […]
Leveraged Loan Insight & Analysis – 3/29/2021
Secondary market levels continue to trend higher Prior to the pandemic, the average bid on the North America Overall-Market cohort of loans was in the 97.5 context, with half of loans bid between the 98-<100 level, bids above par made up a 35% share. At its lowest point last year, March 24, the Overall-Market average…
Debtwire Middle-Market – 3/29/2021
Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield The red line in the chart is the *Cliffwater Direct Lending Index (CDLI) current yield, which is based on the investment income of the underlying assets held by public and private BDCs. BDCs invest in middle market companies, and the Index…
The Pulse of Private Equity – 3/29/2021
Quantifying style drift An upcoming PitchBook analyst note takes a look at GP style drift. It’s an important topic but a frustrating one for LPs. Quantifying the drift is tricky. Our framework assigns style scores to the PE firms themselves over time, instead of at the fund level. We broke the style definitions into three…
Covenant Trends – 3/29/2021
Distribution of Synergies & Cost Savings EBITDA Addback Time Horizons (for Actions Resulting in Addbacks) (Past performance is no guarantee of future results.) Contact: Steven Miller