The global macro picture remains a concern, but credit investors will turn their attentions to micro factors over the next few weeks as earnings season gains momentum. US banks, as usual, will set the tone, and so far the indications are that results will be mixed. JPMorgan’s third-quarter net income of $1.36 per share was…
At $976 billion year to date, leveraged loan and high yield bond issuance is down 13 percent from the same period last year. However, 2013 was a record year driven by refinancing activity and this year’s figure is already ahead of any other full year on record with… Subscribe to Read MoreAlready a member? Log
We remarked last week that volatility had returned to the credit markets, and the spread oscillations this week suggests the trend is set to continue. However, this was no typical period for CDS.The vast majority of indices rolled on October 6th, later than the scheduled date of September 22nd, due to delays in adherence on…
Deal Flow Continued to Decline in 3Q PE deal flow in the U.S. continued to subside through 3Q. 588 deals were completed last quarter totaling $110.1 billion in capital invested. Deal flow is down 27% from the first quarter and capital invested declined 23% in the same period.One of the major culprits for both decreases…
Banks appear to be getting a bit more comfortable with leverage on middle market sponsored deals post their SNC review this year. Every quarter, Thomson Reuters LPC asks banks what is their maximum leverage cap for middle market sponsored-backed deals…. Subscribe to Read MoreAlready a member? Log in here...
Credit markets are now accustomed to low volatility, but there were signs over the third-quarter that the climate is changing. North American CDS, as represented by the Markit CDX.NA.IG index, traded in a relatively broad range during the quarter. The index hit 55bps in early July, its tightest level since October 2007…. Subscribe to Read MoreAlready a
Mega-deals Down, Mega-exits up Few investors are as opportunistic as PE firms, which need to invest at entry points low enough (and exit high enough) to justify their investment models. With valuations where they are right now,… Subscribe to Read MoreAlready a member? Log in here...
Over $429 billion of syndicated loan volume worked its way through the market in 3Q14, to push 1-3Q14 totals north of $1.5 trillion. Although year to date issuance was down a relatively modest 5 percent year over year, 3Q14 lending alone was down 28 percent compared to 2Q14 and off 17 percent… Subscribe to Read
“The silent have spoken,” said Alistair Darling, referring to the convincing victory for the pro-Union campaign in the Scottish referendum…. Subscribe to Read MoreAlready a member? Log in here...
Like the overall PE market, valuations for middle-market companies are elevated. The median valuation-to-EBITDA multiple in 1H 2014 was 10.7x, up from 10.2x last year. Despite those steep price tags,… Subscribe to Read MoreAlready a member? Log in here...