So far in this series we’ve covered the unique lending characteristics of European jurisdictions as well as the inherent advantages held by European banks. This week we look closer at the opportunities presented to non-bank direct lenders. Selling high-yield bonds in Europe has generally been unchanged over the past five years. It’s still a public…
“Europe is not a market,” a keen observer of Europe’s debt market informed us. “First of all,” he said, “there’s the difference in legal jurisdictions. These are real hurdles and won’t change anytime soon. If anything, the EU is becoming less unified.” “Here local teams matter. Even London-based teams have trouble managing deals on the…
Burger King isn’t just selling Whoppers any more. Last week the second largest burger giant began serving hot dogs at all its locations year-round. “We’re applying sixty years of flame-grilling expertise,” said Alex Macedo, President of North America. “We also have to chop the onions a little differently,” he added. The thesis regarding opportunities today…
Over the years the US has been by far the dominant supplier of leveraged loans globally. (See our Chart of the Week) But given similar regulatory pressure being exerted on overseas banks as here, Europe is gaining media attention as a source of debt opportunities for both managers and investors. How should these opportunities be…
If you want to know what middle debt investors are thinking, why not ask them? This novel concept was rolled out simultaneously last week by two experienced middle market practitioners in the form of questionnaires. We thought it would be instructive to give you a sense of what the respondents had to say. The first…
“We’re waiting to see what happens.” For many credit investors, and to some extent investors of all stripes, this oft-heard remark captures well the market’s view of 2016 as we enter its second month. In the world of broadly syndicated loans, arrangers are like auto mechanics working in a dark garage. Operating by feel rather…
News reached us last week that a computer discovered the largest prime number known to exist. A “non-descript desktop” PC in Room 143 at the University of Central Missouri worked for 31 days before locating the 22 million digit numeral. The super calculator, known on campus as “No. 5,” was unavailable for comment. Big numbers…
One of the largest dinosaurs ever found debuted last week at the American Museum of Natural History in New York. At 120 feet, Titanosaur is so long that its head sticks out of the exhibit hall. The paleontologist who uncovered the bones knew he was on to something unusual. “Everything was extremely large,” Dr. Diego…
“People are still standing.” So a friend of ours characterized the broadly syndicated loan market at the close of a bumpy 2015. From his perch at a big bank trading desk, he put a good face on investor appetite. “There are still bids,” he told us. Another large cap sales pro agreed. “Investors are putting…
Just before the holidays we caught up with a friend who runs a middle market credit fund. So how was the year for you, we wanted to know? “Beyond crazy,” he said. “Time just flew by so fast. It seemed like every fifteen minutes, I was having breakfast.” That perfectly captures the velocity in the…