BDC Magazine: Leveraged Finance

By BDC Reporter | Developments in non investment grade lending. Part of a BDC Reporter Magazine series.

Leveraged Loans: Covenant-Lite Share of Market Inches to New High

With investors continuing to clamor for higher-yielding assets, issuance of riskier ‘covenant-lite’ credits in the U.S. leveraged loan market inched …

2017 U.S. Leveraged Loan Issuance Hits Record High

It’s official. With six weeks left to go, 2017 already is the busiest year ever for the U.S. institutional loan market, with $468 billion of issuance …

Funds

Subscriber-only article<p>This article is available only to Creditflux subscribers and free trial users within 30 days of publication.<p>Already a …

Riverside becomes latest PE firm to launch direct lending fund

Boston

3-Month Libor at its highest level since 2008: 1.45%. https://t.co/xnp68xh7JX

Goldman Plots Conquest of Wall Street's $100 Billion CLO Machine

Goldman Sachs Group Inc. is doubling down on the business of financing highly leveraged companies.<p>The bank is trying to capture a bigger share in the …

Finance

The head of JPMorgan's giant investment bank is worried 'the next market correction will be painful'

• <b>Daniel Pinto, the head of JPMorgan Chase's dominant investment bank, told research analysts from Keefe, Bruyette, and Woods that the markets are too complacent right now, and we could be in store for a painful correction.</b>• <b><br>One significant risk is that inflation exceeds projections by investors and</b> …

Economy

LPC: Deutsche Bank pulls back from U.S. leveraged lending

NEW YORK (Reuters) - Deutsche Bank has decided to pull back in arranging leveraged lending transactions in the United States, and the results are showing up in the rankings of banks that finance highly indebted companies.<p>As leveraged loan and high-yield bond volumes jumped over the first three …

Economy

CLO Firms Leverage Up Management Fees - Bloomberg Gadfly

It's been a rough few years for debt-fund managers. Their fees have shrunk and competition has grown.<p>In response, asset managers have become …

Finance

Weekly Commentary - Insights

Key points<p>We are cautious on most UK assets because of Brexit-related economic challenges in the medium term.<br>• Eurozone stocks rallied after the …

Economy

CLO issuance https://t.co/56jj6Q3mEm

In Overheated Leveraged Loan Market, Unregulated Lenders Gobble Up LBO Market Share

With U.S. leveraged loan issuance booming this year and as institutional investors continue to fight for higher-yielding paper, non-regulated lenders …

Hunt for Yield Fuels Boom in Another Complex, Risky Security -- Update

Investors hungry for returns are piling back into securities once tarnished by the financial crisis.<p>Complex structured investments developed a bad reputation during the credit crunch. Ten years later, investors seeking yield are overcoming their skepticism and buying into securities that rely on …

Finance

Top Three Reasons the Corporate Loan Market Is Slumping in 2017

Bankers hoping for an uptick in the corporate loan market next year should keep their fingers crossed for more mergers and acquisitions, if 2017 is …

Markets

Worried About Next LBO Loan Bubble? Private Equity Has Your Back

As safeguards and margins melt away on leveraged loans, there’s one quantum of solace: LBO firms are contributing as much equity to U.S. acquisitions …

Finance

News and Views on the Business Development Company Industry

A portfolio company of 4 BDCs files for Chapter 11 and we consider the implications.<p>3 Special Situation opportunities and 1 removal.<p>As we expected, …

With Investor Demand Intense, Private Equity Shops Tap Leveraged Loan Mart for Dividends

Private equity shops paid themselves $4.76 billion in dividends via leveraged loan recapitalizations in 2017’s third quarter, bringing the …

Hedge funds boost loans to companies as banks shy away

FRANKFURT/LONDON (Reuters) - Private equity firms and hedge funds had funds under management of $600 billion globally last year to lend to companies, a survey said on Wednesday, as they step into the shoes of traditional lenders.<p>The trend highlights a shift away from banks as a source of finance …

Finance

Private markets drowning in cheap cash

Amid the saturation of capital, the very way private markets operate is beginning to change amid soaring valuations, accumulating dry powder, and …

Finance

Loan Stats at a Glance - 7/3/2017

A Guide to Direct Lending

<b>June 21, 2017</b> - On Tuesday, the LSTA hosted a webcast presentation, “It’s Always Better to Be Direct: A Guide to Direct Lending” presented by Latham …

At Long Last, US Leveraged Loan ‘Supply’ Tops Investor Demand

For the first time in 16 months, the supply of U.S. leveraged loans will outpace investor demand, and in a big way. Subtracting loan fund flows and …

May 2017 Secondary Trading Monthly: The Heat is On!

<b>June 19, 2017</b> - U.S. secondary loan trading volumes increased 18% during May to $57.6 billion after falling to a five-month low in April. And after a …

Staples is being acquired by a private-equity firm for $6.9 billion

Staples agreed to be acquired by Sycamore Partners for about $6.9 billion.<p>The company announced Wednesday that it entered a merger agreement with the private-equity firm in which its shareholders will receive $10.25 per share in cash.<p>According to Reuters, Sycamore won an auction for the …

Markets

Stop Fooling Yourself About 8% Easy Returns - Bloomberg Gadfly

There's an amazing amount of denial going on right now.<p>Investors are simply ignoring current market dynamics and are still expecting average annual …

Pair Of Knight Bills Supporting Small Businesses Move Closer To Law

Two bills aimed at supporting small businesses, authored by Congressman Steve Knight (R-25), passed out of committee Wednesday and are one step …

How KKR Beat Citi in Loan Deal for Perelman’s Humvee Maker

When Citigroup Inc. started hawking $300 million of loans for the maker of the Humvee, investors were willing to buy almost any deal for sale.<p>Almost. …

Finance

SEC Reported To Be Looking Into CAN Capital and Prosper

Bloomberg reporter Matt Scully reiterated on Friday that the SEC is looking into CAN Capital “after that firm failed to report to bondholders that …