Special Report: The Great Stay-In – Covid-19’s Impact on the Capital Markets
Beginning in March 2020 The Lead Left published a series of articles on Covid-19 and the market. This report consolidates those articles.
leveraged loan
Special Report: Leveraged Loans and Systemic Risk
Beginning in February 2019 The Lead Left published a series of articles on leveraged loans and systemic risk. This report consolidates those articles.
Leveraged Loans and Systemic Risk (Last of a Series)
If nothing else, the history of leveraged lending since the credit crisis shows both regulators and regulated entities have worked to shift loans off bank balance sheets. The object of Leveraged Lending Guidance, in turn, was not to eliminate credit risk, but limit the most aggressive bank lending practices – for example, leverage over six times…
Leveraged Loans and Systemic Risk (Third of a Series)
What’s in a name? A lot, apparently, if it’s the name of a very large number. According to a WSJ piece last week, as the world of big data grows, so does the problem of keeping track of it. In a decade or so, the amount of information will exceed 1 yottabytes. That’s 1 with…
Leveraged Loans and Systemic Risk (Second of a Series)
According to a Harvard study, middle-aged men who did 40 pushups have a 96% lower risk of cardiovascular disease than those who did 10 or fewer. Not since eighth grade gym class has anyone ordered us to “drop and give me twenty.” But surely in all those formative years we comfortably amassed 40 pushups. To…
Leveraged Loans and Systemic Risk (First of a Series)
“It is difficult for us to envision a scenario in which the leveraged loan market causes the next financial crisis.” – Beth MacLean, loan portfolio manager, PIMCO. We aren’t often torn between which notable Quotes of the Week to feature. This issue, however, presented us with outstanding insights from two long-time credit practitioners. Let’s go…
Search and Recovery (Last of a series)
As we conclude our special series on leveraged loan recoveries, let’s take a look at one structure that is testing the way credit managers think about loan value. Unitranche financings are so much a part of the middle market buyout landscape today, that it’s hard to imagine a time without them. Yet on the evolutionary…
Terms of Endearment
Despite continued strong deal flow this month, conditions in the leveraged loan market remain constructive for issuers. Yes, there’s been push-back on specific transactions, as we’ve been highlighting. But cash keeps flowing into retail funds and new CLOs keep ramping. That’s providing more fuel to the broadly syndicated financings fire. The middle market is also…
What’s Ahead for 2015? (Third of a Series)
We had planned on concluding our 2015 predictions with a forecast of structure and pricing in leveraged loans. But market developments compel us to address first what could a factor in changing both those elements dramatically next year. Like all things unexpected, the precipitous drop in oil prices could have been foreseen if you knew…
What’s Ahead for 2015? (Part Two)
One of the enduring mysteries of life, other than the fact that Kanye West is Bruce Jenner’s son-in-law, is getting a handle on deal supply in the leveraged loan markets. By the numbers, the forward institutional pipeline has been drifting south since Labor Day. According to S&P Capital IQ, last week’s calendar stood at $40…