Refinitiv LPC

Leveraged Loan Insight & Analysis - 12/9/2019

US secondary loan bids get a boost from improved single-B sentiment Average bids in the US secondary loan market have been on the upswing of late. The LPC 100, Refinitiv LPC’s cohort of the 100 largest and most liquid loans, closed Monday bid at 98.02, its highest level since August 2. The LPC 100 was…

Leveraged Loan Insight & Analysis - 12/2/2019

Defaulted loans ticked down slightly for BDCs in 3Q19 Lenders and investors are exhibiting growing concerns surrounding slowing growth and where the economy is headed. Yet non-accruals within BDC portfolios are not yet showing any accelerating signs of deterioration. As of the September 30 filing date, the share of BDC loans on non-accrual status as…

Leveraged Loan Insight & Analysis - 11/25/2019

Oil and gas lending follows oil prices down The oil and gas industry is facing many challenges – recession fears, the ongoing trade war, regulatory shifts and excess global supply amid slowing growth in demand – all of which have curtailed any expectations of a meaningful increase in oil and gas prices. Oil prices have…

Leveraged Loan Insight & Analysis - 11/18/2019

Distressed percentage accelerates on BDC loans For several years in an asset and yield starved market, BDCs stretched up the risk spectrum in an effort to keep up their lofty dividend yields. As the credit environment becomes tougher this year amid slowing global growth, more cracks are beginning to surface in BDC holdings. So far…

Leveraged Loan Insight & Analysis - 11/11/2019

BDC leverage on the rise, one tool to combat falling Libor After peaking in December 2018 at over 2.8%, 3-month Libor has since fallen to 1.9% and BDCs are reporting lower weighted average yields in 3Q19 as a result. Following this steep decline, BDCs are taking advantage of their flexibility to increase leverage under the…

Leveraged Loan Insight & Analysis - 11/4/2019

Average US second-lien secondary bids at lowest levels since 2016 US second-lien loans have traded down considerably in the secondary market over the past few months. The last round of risk-off behavior by secondary market loan players sent second-lien bids as low as the 87.01 level on October 18th, over a five-point decline from the…

Leveraged Loan Insight & Analysis - 10/28/2019

Total leverage on large corporate US LBO loans remains high in 4Q19, but senior leverage declines At a time when investors have been pushing back on pricing and structure on riskier loans, total leverage on US LBO deals remains high. So far this quarter the average total debt to EBITDA level for large corporate LBO…

Leveraged Loan Insight & Analysis - 10/21/2019

Flight to quality continues on in the US leveraged loan market Looking at year-to-date average secondary bids along with loan volume highlights the flight to quality seen in the US loan market over the past few months. Corporates with a rating of single-B or lower peaked in 2019 monthly volume with US$24bn back in May….

Leveraged Loan Insight & Analysis - 10/14/2019

Recent investor challenged single-B deals have yet to gain traction since breaking in the US secondary market As bifurcation among credits continues, a number of recently launched deals for single-B names received significant investor pushback during syndication. Not surprisingly perhaps, none of these loans have been bid above their break price in the secondary market….

Leveraged Loan Insight & Analysis - 10/7/2019

1-3Q19 Sponsored loan volume off 48%; LBO volume at 3-year low Less than US$90bn in syndicated loan volume backing PE sponsor activity was completed in the US market in 3Q19, the third lowest quarterly total in the last three years, and a 30% drop year over year. In turn, less than US$265bn in sponsored loan…