Post-pandemic: The New Healthcare

Healthcare has been ground zero for the worst pandemic of the modern era. How the industry has reacted and how credit and equity providers are dealing with this new world order, is the subject of our new special series. “Physician practice management companies were the first and worst hit,” one banker reported. “Procedure volume dropped […]

High-Yield and Private Credit: Volatile Times

“Time to go to cash,” we announced recently at the dinner table. The Dow had almost climbed back to its February 12 peak. “What does that mean?” our six-year old daughter asked. Her mother replied, “It means Daddy wants to put our money in a mattress.” Unfortunately more pressing matters – like whether to give […]

High-Yield and Private Credit

In our just-completed series on high-yield bonds, we concluded that issuer and investor activity has largely been driven by technical factors: near-zero interest rates, the Fed’s support of fallen angels, and skewed-to-worse ratings for leveraged loans. How then should investors be thinking about the illiquid market? Private credit has a different profile than tradable assets. […]

Bonds vs. Loans - The Takeaway

What’s been described as “massive” new issuance in the high-yield market led to the most deal volume for May ($48 billion) since 2003, according LevFin Insight’s Matt Fuller. As our Chart of the Week depicts, cash inflows to bond funds totaled over $35 billion in the past nine weeks. That includes the top three weekly […]

High-Yield Bonds: Deal by Deal

We continue our special series on high-yield bonds with a look at more deals in the market, with our tour guide, Matt Fuller of LevFin Insights. Northwest Fiber came out with a loan/bond buyout of Frontier Communication assets. This could grease the skids for other regular-way LBOs. Another flagship deal was for Viking Cruises (B-/B1). […]

Junk Bonds on a Roll

One of our readers asked for help deciphering what was going on in the high-yield market. So we recruited Matt Fuller from our content partner, LevFin Insights. “From the perspective of high-yield investors,” Matt told us, “it’s a great time to be involved. We were pretty much shut down in March. Total volume was only […]

Covid-19 and the Labor Market

The Bank of England has projected the COVID-19 pandemic will cause GDP for the UK to decline 14% this year. That’s the worst economic performance in three centuries. In 1706 (when the Bank of England was twelve years old) Great Britain was a very different place: devastated by wars and weather, the union with Scotland […]

Direct Lending....After COVID-19

As we wrap up our COVID series, we turn our attention to the path ahead, as unclear as that is. Or as one economist put it succinctly: “Anyone who thinks we’re going to keep moving up in a straight line is living in La-La Land.” The good news is markets have fully absorbed the shock […]

The Great Stay-In vs the Great Recession: Lessons Learned

“The GFC was a crisis that began on Wall Street and spread to Main Street. COVID-19 is a crisis that began on Main Street and spread to Wall Street.” That’s how one private credit manager compared the two worst downturns since the 1930’s. With the coronavirus still in its early stages, this pandemic might end […]

Covid-19: The Best and the Worst Industries

If you’re watching this broadcast from your home office, you’re not alone. According to one study, 97% of the US population is either at home or sheltering in place. This has completely upended the free-flowing, dynamic nature of the largest, most diversified economy on the planet. -Industries that took decades to develop competitive products and […]