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…
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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…
Contact: Timothy Stubbs timothy.stubbs@spglobal.com
European hybrid bonds continue to underperform Idiosyncratic risk in the European corporate hybrid bond sector has seen new issuance stall and credit spreads rise. European Hybrid bonds have underperformed their senior counterparts over the last year Idiosyncratic risk has been key driver, with Volkswagen and Total seeing spreads widen Markit iBoxx EUR Liquid High Yield…
The question of where we are in the business cycle may ultimately be answered only in hindsight. Similarly what triggers the next cycle will likely different than what set off previous downturns. Subprime mortgages, tech, or sovereign defaults will probably not be culprits, though fallen energy credits could certainly qualify. Given the mature recovery, credit…
Middle market and large cap LBOs totaled thirteen so far this quarter; there were sixty for 2Q 2015. Source: Thomson Reuters LPC