Italy CDS – watch the ISDA basis This year was widely touted by many – including yours truly – as the year of political risk. As we now know it didn’t turn out that way. Emmanuel Macron fought off the challenge of the National Front, Mark Rutte was re-elected as Dutch Prime Minister and Italy…
Flex activity swings back in favor of issuers this week So far this week, flex activity has swung back in favor of issuers after investors pushed back on several deals in prior weeks. The Flex Factor averages a very issuer friendly flex score of -1.9 this week, after occupying investor friendly territory the prior two…
Buyout funds, distressed debt strategies outperform their peers Download PitchBook’s Report click here. How do private asset classes compare on a real and risk-adjusted basis? Our latest analyst note (Is the risk worth the wait?) gauged the risk/return profile of buyout funds between 2000 and 2012 against PE growth, PE energy and venture capital strategies,…
India-Based Private Debt Market Although the private debt industry is still an emerging asset class in India, it represents 13% of the market across the Asia-Pacific. Additionally, since 2014, India-based private debt assets under management has grown steadily from $2.6bn in December 2014 to $3.3bn in December 2016. Additionally, as at December 2016, dry powder…
Yields widen slightly for new money deals; tighten for refis Average yields for first-lien institutional term loans have tightened slightly so far in 4Q17, after having ticked up in the past two quarters. The average first-lien institutional term loan yield, assuming a three-year term to repayment is 5.09% in 4Q17, down 7bp from the 5.16%…
FoF needs a reset Download PitchBook’s Report click here. Are fund-of-funds obsolete? It’s a question that’s been asked over the years, but one that is taking on more urgency as the numbers continue to slide down and to the right. FoF fundraising declined a fourth straight year in 2016 and is on track for a…
Private Debt Funds in Market As at November 2017, there is a record 324 private debt funds in market, seeking a combined $153bn in capital commitments. This represents a 12% increase in the number of funds raising capital and a 21% rise in targeted capital compared to the beginning of 2017…. Subscribe to Read MoreAlready
iTraxx Crossover underperforming? Here in the UK there is no end of doom and gloom about Brexit and the state of the economy. One could be forgiven for approaching the end of 2017 in a bleak mood. But the European investment grade market appears immune to this despondency; indeed, we are going into year-end in…
Middle Market LBO issuance hits post credit crisis high at $24B Despite lenders complaining of a supply demand imbalance for most of the year, middle market LBO issuance is actually quite robust in 2017. Year to date, syndicated middle market LBO loan issuance has already reached US$24.2B, the highest level tracked post credit crisis and…
Private Debt Management Fees Both mean and median management fees for private debt funds have been moving down since the highs for vintage 2013 funds, with the average management fees falling to a 10-year low among 2017 vintage funds. The mean investment fee for 2017 vehicles has dropped to 1.52%, while the median fee has…