Market volatility from last year’s oil price shock dramatically cut both issuer and investor-friendly flex activity. Source: Thomson Reuters LPC… Subscribe to Read MoreAlready a member? Log in here...
Both loan and high-yield bond yields peaked in mid-December, easing since. Relative spread favors junk by 200 bps. Gap between high-yield bonds and loans Source: S&P LCD
Better issuers get better pricing, but oil-related market volatility has lifted yields on all credits. Average new-issue yield to maturity Source: S&P LCD … Subscribe to Read MoreAlready a member? Log in here...
Loan repayments have declined since July 2013, as widening spreads foil issuers looking to cheapen borrowing costs. Source: SEC filings, ratings reports, market sources, S&P/LSTA Index… Subscribe to Read MoreAlready a member? Log in here...
Out-flows from retail loan funds eased last month from December’s flood, helping rebalance supply-demand technicals in favor of issuers.
Regulators cite “weak characteristic” of many leveraged borrowers’ inability to repay debt within seven year tenors. Source: The Fed, FDIC, OCC (Shared National Credits Program (2014 Leveraged Loan Supplement)… Subscribe to Read MoreAlready a member? Log in here...
Supply-demand dynamics – too much cash and too few deals – have pushed second-lien spreads down since the credit crisis. Average Spread of Middle Market Second-Lien Loans Source: S&P Capital IQ… Subscribe to Read MoreAlready a member? Log in here...
Oil price induced volatility pushed up yields on both first and second-lien term loans last year, though availability of the latter declined…. Subscribe to Read MoreAlready a member? Log in here...
Quarterly issuance of second-lien loans peaked in the second quarter of 2014 and has declined steadily due to market conditions. Source: S&P Capital IQ… Subscribe to Read MoreAlready a member? Log in here...
The stricter regulatory environment caused lenders to scale back debt multiples for all leveraged loans at the close of last year. Source: Thomson Reuters LPC… Subscribe to Read MoreAlready a member? Log in here...