Uncle Bucks Whatever the investing climate is for the balance of the year, 2014 will see the best fundraising for PE sponsors since 2008. Source: Thomson Reuters Buyouts… Subscribe to Read MoreAlready a member? Log in here...
Buyout Buckets Middle market LBOs typically outnumber their large cap counterparts, but that pattern has reversed, and midcap activity remains off 2012 levels…. Subscribe to Read MoreAlready a member? Log in here...
Got Covenants? Over half of all outstanding leveraged loans have no maintenance covenants, affording significant protection to those issuers in a downturn. Source: S&P Capital IQ LCD… Subscribe to Read MoreAlready a member? Log in here...
Rhymes, Not Repeats While growing over the past four years, the share of post-crisis buyouts with hyper-leverage and weak coverage metrics pales in comparison with the heady pre-crisis days…. Subscribe to Read MoreAlready a member? Log in here...
Not For Sale Leveraged buyout activity since the credit crisis has been muted, though 2014 volume could be best since 2006…. Subscribe to Read MoreAlready a member? Log in here...
Prime Targets Retail loan funds have suffered outflows 14 of the past 16 weeks, shrinking net additions to $765 million so far this year, compared to $30 billion for the same period last year…. Subscribe to Read MoreAlready a member? Log in here...
Tale of Two Vintages By one measure – public-to-private buyouts – today’s market is non-existent relative to pre-crisis levels. But sponsor-to-sponsor deals and corporate spin-outs are at a record pace…. Subscribe to Read MoreAlready a member? Log in here...
Treble Ahead New providers of triple-A CLO liabilities are expected to help tighten spreads to 135-140 bps by year-end. Beyond that, uncertainty on vehicle structures could reverse that trend…. Subscribe to Read MoreAlready a member? Log in here...
Arbitrage This While yields for middle market loans have generally contracted over the past four years, the cost of triple-A liabilities for middle market CLOs has been range-bound at L+175, about 25-50 bps higher than their BSL equivalents. MM Loans vs. MM CLO AAA Spreads… Subscribe to Read MoreAlready a member? Log in here...
Two-Bit Performance While two quarters does not a full year make, CLO issuance for 2Q this year will be the best second quarter in loan market history. That would beat 2007’s record of almost $33 billion, when annual volume hit just under $105 billion…. Subscribe to Read MoreAlready a member? Log in here...