Private Debt Fundraising Remains Low in Q3 2016 Preqin’s Q3 update on the private debt fundraising market finds that the quarter marked a further slowdown in the levels of capital secured by managers in the space, as 2016 continues to see a far reduced rate in fundraising activity from recent years…. Subscribe to Read MoreAlready
Numerous press articles in recent years have predicted the death of single name CDS. Onerous capital requirements, costly changes in market structure and alternative hedging tools have all been cited as factors driving the inexorable decline in the product. No one could deny that CDS activity has dropped sharply from its pre-crisis heyday. But the…
Despite strong market technicals, 3Q16 global loan volume down 33%; 1-3Q16 volume down 13% y-o-y Despite strong market technicals, at US$736Bn, global syndicated loan issuance was down 33% in 3Q16 reversing … Subscribe to Read MoreAlready a member? Log in here...
Familiarity Breeds Debt Usage Based on PitchBook and aggregated survey data, average debt levels in the second quarter of 2016 were much higher for transactions with smaller companies than they were for their larger counterparts. In fact, businesses with enterprise values of up to $25 million averaged 53% in… Subscribe to Read MoreAlready a member?
Strategies Targeted by Private Debt Investors According to Preqin’s Investor Outlook: Alternative Assets, H2 2016, 56% of investors with an active mandate in private debt are seeking to make at least one direct lending commitment within the next 12 months, the largest proportion among strategies in the asset class…. Subscribe to Read MoreAlready a member?
We noted last week that Deutsche Bank could soon become the widest name in the Markit iTraxx Europe if its credit deterioration continued. It came to pass perhaps sooner than many expected, with its senior five-year spreads closing at 251bps on September 26, 6bps wider than Glencore. This is a significant development, and reflects the…
The secondary market has continued to climb as the combined impact of robust demand for paper and the lack of sufficient net new deal flow puts upward pressure on loan bids. Steady CLO issuance and money entering retail funds have provided the impetus on the demand side. Month to date CLO issuance is at $7.1…
Median EV/EBITDA buyout multiples surge in 2Q 2016 for sub-$25M enterprises Respondents to PitchBook’s most recent Deal Multiples survey reported a median EV-to-EBITDA multiple of 6.13x at the sub-$25 million EV range in 2Q 2016. That figure is nearly a turn higher than what was recorded in the first quarter of the year. One of…
Average Private Debt Management Fees by Fund Type Negotiating appropriately structured fund terms and conditions has long been a key issue for investors across the alternative assets industry. While investors are generally happy with the performance of the private debt industry, in Preqin’s H2 2016 Investor Outlook just 60% of respondents stated that they felt…
Having the distinction of being the widest constituent in the Markit iTraxx Europe is clearly one that most companies would prefer not to have. Yet Glencore has held this dubious honour since the last index roll in March and beyond. It had a challenger in fellow miner Anglo American, but Anglo’s downgrade to junk and…