BDC share prices rally after plummeting to below 0.4x book value earlier in week BDC share prices rallied on Thursday following the coronavirus relief bill cleared by the U.S. Senate. At the start of the week, BDCs were brought back to their darkest days of The Great Financial crisis with average BDC share price-to-book value…
Competing interests for private equity Download PitchBook’s Report here. Private equity has lots of money at the ready—the question is what they will use it for. In the months ahead, investors will be looking at an unprecedented opportunity to buy. On the other hand, they’re also in very familiar territory of keeping their current crop of…
Private Debt: Rise of Covenant-Lite Loans The growth in covenant-lite issuance in the loan market has sparked heavy discussion. The growth of supply in mid-market lending has led to a loss of value, which has in turn brought about a rise in weaker covenants. As investors allocate to private debt, they find themselves increasingly unable…
Why it’s now even harder for first timers The lack of in-person meetings as a result of covid-19 is an added hurdle for debut funds, but a deal-by-deal approach could still win support. First-time funds have not had an easy time amid a competitive fundraising environment and the rapid spread of covid-19 will only make…
CRC and Chesapeake TLs lead largest losers in falling oil and gas loan prices As oil and gas companies try to weather these tumultuous times, some investors are worried that reduced revenue may push some oil and gas issuers to default on their corporate debt. This concern has been pushing oil and gas loan prices…
The private markets aren’t immune Download PitchBook’s Report here. Much was made of the “buoyant” nature of the SuperReturn conference earlier this month. The gathering took place just as stocks began stuttering and the opportunity for turnaround artists looked vibrant. Three weeks later, that consensus appears to be shifting as the underlying economy itself shifts…. Subscribe
Private Debt slow to adopt ESG Frameworks In most alternative asset classes, ESG has been the acronym on everyone’s lips, but not so much in the private debt industry. A total of 292 private debt fund managers are signatories to ESG/impact investing frameworks tracked by Preqin…. Subscribe to Read MoreAlready a member? Log in here...
How does the dry power get invested now? The market is pausing for thought at a time when there’s plenty of capital waiting to find a home. One constant topic of PDI’s conversations with the market over the last few years has been the inevitability that at some point something would trigger a downturn…. Subscribe
Unitranche in price discovery mode, likely moving back over 600bp Amid falling Libor and more volatile pricing conditions in the syndicated market, unitranche pricing is moving higher after hitting rock bottom levels in 4Q19. So far in 1Q20, the average blended spread on a unitranche is 590bp, up from a low of 578bp in 4Q19….
The Rise of Asian Private Debt A growing middle class in Asia has inflated demand for private debt. This swelling middle class has in turn created growth in the SME market, which has led to robust fundraising. Aggregate capital raised for Asia-focused private debt funds has more than doubled from $3.5bn in 2016 to $8.4bn…