Distressed Debt Fundraising Overtaken by Direct Lending in North America During the Global Financial Crisis (GFC), the distressed debt market in North America established itself as the driving force behind the emerging industry of private debt in the region. Throughout 2007 and 2008, an aggregate $80bn was raised through distressed debt vehicles as investors allocated…
Securitised peer-to-peer loans see risk escalate Recent troubles at Lending Club have only compounded risk in the peer-to-peer credit market P2P backed loans were introduced in 2014 and saw spreads fall to lows in mid-2015 Average spread on senior P2P loan backed securities has widened 76% since last October Markit Liquidity score among P2P securities…
Private Debt Developing in Asia Although the private debt market in Asia remains substantially smaller than the more developed credit markets in Europe and North America, data from Preqin points to a growth in the Asia-focused industry. Seventeen private debt funds principally focused on Asia closed in 2015 raising $6.1bn in aggregate capital. This represented…
Downward flexes continue at the forefront of flex activity so far in May. There have been three times more downward price flexes than upward price revisions this month. However, with nine downward flexes so far, May is trailing the 24 price cuts tracked in April. Terms continue to favor issuers this quarter, and at 33…
A major consequence of regulatory reform since the credit crisis has been the reduction of future demand for leveraged loans. As one example, risk retention rules have dramatically impacted the formation of new CLOs. These securitized vehicles currently comprise roughly 60% of the broader US loan market. Banks, of course, have seen their capacity curtailed…
Almost two-thirds of all US CLO vehicles exit their reinvestment periods during 2017-19, leaving demand gap. US CLOs outstanding by reinvestment period ($Bns) Source: JP Morgan, US Fixed Income Markets Weekly
This week we chat with Deborah Hicks Midanek, founder and managing partner of Solon Group. Solon is a restructuring and turnaround advisory firm. The Lead Left: Deborah, tell us about Solon. First thing we noticed was you are a small firm. Deborah Midanek: Having served as a principal of AlixPartners when it was still small…
????Click for a larger image.
Recent PE Funds Have a Head Start As is to be expected, private equity funds of all vintages and geographies see their average distributed-to-paid-in multiples climb over time, as managers successfully liquidate even aging holdings after years of operational enhancements. The rates of increase in DPI multiples by vintage, however, can be split into two…