In recent months, thanks to market volatility caused by higher interest rates, toppy inflation, and the perceived higher probability of a recession, large cap loan prices have traded down sharply. S&P/LCD’s leveraged loan index has dropped from 98.5 in February to 92 last week… ▶︎ Read July 11 2022 newsletter: here ▶︎ Chart of the […]
Broadly syndicated loans are liquid, one investor told us, so they high volatility that exaggerates credit deterioration. The middle market, he said, is illiquid, so has low volatility which can mask credit deterioration… ▶︎ Read July 4 2022 newsletter: here ▶︎ Chart of the Week: here (by Lincoln International, S&P/LCD) (Any “forward-looking” information may include, […]
Many direct lenders only finance businesses backed by private equity sponsors. While non-sponsored strategies have benefits, the presence of an owner with its own track record, industry experience, and deal sourcing prowess, gives relationship lenders distinct advantages… ▶︎ Read June 27 2022 newsletter: here ▶︎ Chart of the Week: here (by Lincoln International, S&P Capital […]
“What’s the key portfolio strategy managers should employ for success?” “Diversify!” That’s how one top PM answered our question. There are many levels and measures of diversity. You don’t want to be stuck with large exposures in any one industry, no matter how resilient it may seem… ▶︎ Read June 20 2022 newsletter: here ▶︎ […]
What makes for successful portfolio construction in private credit? The issue carries more urgency amid current public market turmoil. Leveraged loans will always be in a non-investment grade risk bucket. Middle market loans, being less leveraged and covenanted, are a more conservative play, but recessions will always test borrowers no matter how creditworthy… ▶︎ Read […]
As the oldest living person on Earth until her passing last month, #KaneTanaka was born a year before the Wright Brothers’ historic first flight at Kitty Hawk. Her secret to a long life? “Being myself.”… ▶︎ Read JUNE 6 2022 newsletter: here ▶︎ Chart of the Week: here (by Bloomberg, UBS (courtesy The Daily Shot)) […]
The old Naval Air Station in Charlestown, RI was right next to the summer house we lived in as kids. Aviators would fly training patterns over our heads, circle back to the airfield, touch wheels down, and head around again… ▶︎ Read May 30 2022 newsletter: here ▶︎ Chart of the Week: here (by Natixis, […]
Last month the FDA began a formal investigation into complaints that eating Lucky Charms was making people sick. On iwaspoisoned.com, a social media forum, thousands reported serious stomach problems after eating the popular cereal… ▶︎ Read May 23 2022 newsletter: here ▶︎ Chart of the Week: here (by Numera Analytics) (Any “forward-looking” information may include, […]
We wrap up our special series by examining how private credit integrates ESG into its various strategies. While credit managers are typically not involved in the direct management of businesses they finance, impact investing is an exception. According to a recent PDI article, private debt represents 34% of all impact investing AUM, with real assets […]
Traditionally ESG resided in public equities given shareholder’s ability to change corporate behavior. But more sophisticated tools would be needed to track ESG compliance and opportunities. ESG integration describes how investors incorporate all aspects of environmental, social and governance in their risk analysis of a business or manager… ▶︎ Read May 9 2022 newsletter: here […]