We had just polished off our second helping of pumpkin pie last Thursday evening when the first (of what we assume will be many) “2015 Market Outlook” hit our in-box. Always big supporters of the crystal ball crowd, we thought we’d begin our own prognostication series by sharing some of the contents of that forecast…
One of the most noted stories of the current loan market is the amount of investor cash that has re-entered the asset class since 2010. While it certainly has produced eye-catching frothiness, how does this liquidity compare with the definitional froth of 2007? In our just-published series on the role of CLOs in both past…
They’re big, they’re bad, and now that they’re back, the end of the world is upon us. No, we’re not referring to the latest Transformers instalment: Age of Extinction.Though we’re compelled to point out that seems an equally appropriate headline for the obituary so many market observers seem eager to write about CLOs’ demise-by-Dodd-Frank. But just as…
Until recently, institutional investors have always had a love-hate relationship with the middle market – minus the love. Compared to reassuringly large, liquid credits, companies with less than $50 million in Ebitda tend to be private, their debt unrated, their businesses niche-oriented, their access to public markets limited, and their management teams entrepreneurially lean. Further,…
After publication last week, we were concerned we had been a bit rough on our bank friends in dismissing the ability of regulated institutions to adapt as readily as CLO’s when loans became troubled. An informal survey of those friends revealed that, if anything, we had been too generous. “You were spot on with your…
In the classic comedic bit from the early 1960’s, Mel Brooks, as a two thousand year old man, is asked what he thought mankind’s greatest invention was. “Saran Wrap,” he answers promptly. Not the discovery of space? “That was good,” he admits. We’re not sure what the venerable Mr. Brooks would say today if posed…
A few days before last month’s running of the 140th Kentucky Derby, the WSJ published a piece detailing six reasons why California Chrome wouldn’t win. Of course, the California-bred colt, a 5-2 favorite, dominated the field and took home the $1.2 million first-prize. No word on whether the sports editor has been reassigned. Against all odds, the CLO…