Chart of the Week: Honey, I Shrunk the Interest Coverage Cushions
The Fed’s “higher-for-longer” has compressed leverage loan coverage ratios. Source: PitchBook | LCD(Past performance is no guarantee of future results.)
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Best Practices in Private Credit (Second of a Series)
This week we acquainted ourselves with fun facts about solar eclipses. One is the fortuitousness of size and distance. If the Moon was slightly smaller or further away from Earth, there would be no totality. This coincidence is also impermanent. Apparently, the Moon is creeping away from our planet at the rate of 1.5 inches…
Middle Market & Private Credit – 4/8/2024
What is Driving Increasing Deal Sizes in Private Credit? Direct lenders have increasingly been targeting larger companies, after previously focusing on middle market sized companies. (Fitch loosely defines larger as companies with about $500 million of debt and about $100 million of EBITDA or above)… Login to Read More...
PDI Picks – 4/8/2024
The rise of quasi-distress As fund managers become adept at heading off problems before they threaten to kill companies off, distressed strategies are changing in nature. The news in August last year that Oaktree Capital Management was in the market with an ambitious $18 billion target for its latest opportunistic credit fund highlights the burgeoning…
Loan Stats at a Glance – 4/8/2024
Source: PitchBook LCDContact: Ryan BrownRyan.Brown@pitchbook.com
The New Order: Leverage Finance in an Asset Management World (Third of a Series)
We want to highlight issues demonstrating almost willful ignorance of the role private credit plays in today’s asset management world. We understand the temptation of attention-grabbing headlines. But they do a disservice to investors exploring alternatives in a world that’s punished the usual options. Getting them accurate information on private credit would be a great […]
PDI Picks – 4/1/2024
Is stress emerging to save Asian fundraising? Last year was tough for GPs seeking capital to invest in Asia Pacific but distressed/opportunistic strategies were bucking the trend. Fundraising for private credit in Asia Pacific took a nasty hit in 2023, with just 11 funds reaching the finish line, compared with 33 the year before. The…
KBRA Direct Lending Deals: News & Analysis – 4/1/2024
Defaults: Rates steady, but signs point to increases later this year Direct lending defaults and non-accruals are low, yet other key measures suggest there’s room for growth in both segments later this year and into 2025. Some expect fragile assets to start crumbling by the second half of 2024—there’s not much runway left after an…
Chart of the Week: All About Portfolios
Top three criteria investors use to select credit managers are portfolio-centric. Source: Coalition Greenwich 2023 Private Credit Market Structure Study(Past performance is no guarantee of future results.)
Best Practices in Private Credit (First of a Series)
Last Thursday was opening day for MLB, a hopeful sign of spring. Catching up on some interesting 2023 statistics from our national pastime, we noted that Luis Arráez of the Miami Marlins won the NL batting championship with a .354 average. Astonishingly, this was Arráez’s second consecutive title. He topped the AL in 2022 with…