Refinitiv LPC

Leveraged Loan Insight & Analysis -10/17/2016

Influx of second-lien issuance has investors pushing back on terms

Recently, investors have been more open to the lower rated, higher return type of loans that were more scarce earlier in the year. In particular, second-lien issuance has picked up. Just two weeks into October and there has already been US$1.5bn in completed second-lien loan issuance which would account for 57% of second-lien issuance for all of 2Q16. This influx of higher yielding assets into the market has caused more push back from investors during negotiations...

Leveraged Loan Insight & Analysis -10/10/2016

3Q16 Loan volume down nearly 40% q-o-q, 1-3Q16 totals down 11% y-o-y Issuance in the US loan market got off to a rough start in 3Q16 to dampen results for the full quarter while leaving lenders and investors hungry. At US$372 billion,… Login to Read More...

Leveraged Loan Insight & Analysis -9/26/2016

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…

Leveraged Loan Insight & Analysis -9/19/2016

Lender Survey: Are you seeing cracks in your portfolio?  Yes, we are seeing signs of cracks in credit quality in our portfolios, said roughly  35% of the attendees gathered at the Marriott in Times Square for Thomson Reuters LPC’s 22nd Annual Loan & CLO Conference on Thursday.  While these respondents said some companies are falling…

Leveraged Loan Insight & Analysis -9/12/2016

Nearly half of U.S. CLOs see weighted average bids on underlying assets climb to 97 or higher  The upward trend seen in secondary loan bids is mirrored when tracking all the assets held by CLOs in LPC’s Collateral database. Through mid-February, bids on loans held by CLOS had been grinding down in line with other…

Leveraged Loan Insight & Analysis -9/5/2016

Issuers largely continue to win out on flex, but investors are pushing back on riskier credits Similar to previous months, flex activity in August continued along the path of being mostly a borrower friendly market. Thomson Reuters LPC’s Flex Factor scored -0.6 in August, the fifth straight month in issuer friendly land. The Flex Factor…

Leveraged Loan Insight & Analysis - 8/15/2016

HY E&P Trailing 12-month default rate surpasses 31% There was $5.2 billion of U.S. high yield bond default volume in July, pushing the trailing 12-month (TTM) rate to 5.1% from 4.9% at the end of June, according to Fitch Ratings. Halcon Resources Corp.’s long-awaited bankruptcy comprised… Login to Read More...

Leveraged Loan Insight & Analysis - 8/8/2016

Fed Survey: 10% of banks reported tightening terms The majority of banks surveyed reported little change in the last three months with only one domestic bank reporting easing terms to larger firms, according to the latest Federal Reserve Senior Loan Officer Opinion Survey. This is down from 13%… Login to Read More...

Leveraged Loan Insight & Analysis - 8/1/2016

Flex activity continued to favor issuers in July Market sentiment in July was more of the same in the leveraged institutional market. Although deal flow thinned out from a swell of volume in June, negotiations continued to favor issuers. Thomson Reuters LPC’s Flex Factor scored a -0.04 for July,… Login to Read More...