Chart of the Week: Springing a Leak
Dropping oil prices and last week’s Fed rate hike caused investors to push almost $5.7 billion out of high-yield accounts; totaling $8 billion in only three weeks.
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Select Deals in the Market – 3/20/2017
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Loan Stats at a Glance – 3/20/2017
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
Markit Recap – 3/13/2017
Its mid-March, spring is upon on us and the credit markets are rallying. A rate hike by the US Federal Reserve was greeted positively by the market thanks to a dovish tone struck by Janet Yellen and her colleagues.
Technical factors also played their part. Option expiry occurs on the third Wednesday of the month, and position covering no doubt contributed to the tightening in the indices...
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Leveraged Loan Insight & Analysis – 3/13/2017
What is the #1 factor to winning a deal in today’s environment?
When asked to select the #1 biggest driver in helping them win deals in this increasingly competitive environment, middle market banks were mixed. According to Thomson Reuters LPC's recent survey, one quarter said it comes down to the relationship, especially in the non-sponsored market where issuers rely heavily on that long term relationship. Perhaps more surprising, only 4% of non-banks ranked reputation and relationship as the number one factor. One quarter of banks chose willingness to stretch especially with regard to sponsors who are often asking for large corporate term sheets on smaller deals. One fifth of non-regulated lenders agreed...
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Covenant Trends – Percentage of Loans with an MFN Sunset
Contact: Steven Miller smiller@covenantreview
Debtwire Middle-Market – 3/13/2017
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…
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Middle Market Deal Terms at a Glance – Mar 2017
Source: SPP Capital Partners Contact: Stefan Shaffer stefan@sppcapital.com
Private Credit vs. Public Debt (Third of a Series)
The fundamental thesis governing credit risk for bond holders relative to loan holders is that the latter is advantaged by the seniority and secured position in the issuer’s capital stack. As our Chart of the Week shows, these two elements work together to give loan investors the best chance for the highest recovery in case…
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