Chart of the Week: Blending Down
After slow declines in the past three years, unitranche spreads have dropped dramatically, thanks to competitive first lien/second lien structures.
TheLeadLeft
Private Debt Intelligence – 10/23/2017
Direct Lending Drives Private Debt Performance Preqin’s latest review of private debt fund performance finds that direct lending funds have been the driving force behind the asset class posting strong recent returns. The strategy has posted horizon IRRs of 15.9% in the year to the end of 2016, significantly higher than any other fund type….
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Loan Stats at a Glance – 10/23/2017
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Markit Recap – 10/16/2017
Wind CDS orphaned? We noted last month that orphaned CDS seemed to be on the rise, with both EDP in Portugal and Italy’s Wind possibly losing their relationships with deliverable obligations. The picture was clear with EDP – bonds will be issued out of EDP Finance BV and this was reflected in the entity’s inclusion…
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Leveraged Loan Insight & Analysis – 10/16/2017
Strong investor appetite supports institutional issuance but tougher credits command better terms Despite robust market technicals including two weeks of retail fund inflows and a steady CLO pipeline, institutional lenders are reconciling strong demand for assets with discipline around credit quality. Roughly $34Bn of institutional loan volume has come to market early in 4Q17 and…
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Special Report: How Big is the Middle Market?
Beginning in July 2017 The Lead Left published a series of articles on the size of middle market. This report consolidates those articles.
Debtwire Middle-Market – 10/16/2017
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 comprises of more…
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Covenant Trends – 10/16/2017
Percentage of M&A-Related Loans with >6x Closing Total Leverage Contact: Steven Miller smiller@covenantreview
Spot-lite on Cov-lite (Third of a Series)
The notion that covenant-lite loans are bestowed on only the best and brightest borrowers has been pretty banged up. Cov-lite and other leveraged lending terms are now hostages in the front-line battle middle market arrangers are waging for business. Competition is no longer just among the midcap lender themselves. For companies in and around the…
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