BDC Magazine: Leveraged Finance

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

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 …

Venture Capital

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 …

Small Business

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. …

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 …

Wells Fargo

CITI: 'One of the scariest charts to look at' could create major concerns about the market

The slowdown in US dealmaking since 2015 is cause for concern, Citi's equity strategists say.<p>"In some respects, one of the scariest charts to look at currently is the number of announced mergers & acquisition deals over the past year or two," Tobias Levkovich, the chief US equity strategist at …

Economy

KKR seeks $2 bln for middle-market lending

• New fund to provide loans to mid-market companies<br>• KKR Lending Partners II closed $1.34 bln in 2015<br>• Fund II netting a 16.2 pct IRR through Dec. …

FinTech

Credit Buyers Set for a Sedate Summer as Politics Paralyzes the Market

Tight credit spreads and uncertainty about the Trump Administration’s economic policy have money managers bracing for low returns on their corporate …

Disaster Drought Leaves Turnaround Gurus Scrounging for Jobs

Restructuring advisers are short on work and long on time, thanks to a dearth of troubled companies.<p>A partner at one of the biggest turnaround firms …

Funds

• 4-weeks' free online access to our<br>most recent subscriber-only articles<br>• Daily breaking news alert sent by email<br>• A print copy of Creditflux<p>If you …

Leveraged Loans: Amid Demand, Second-Lien Issuance Grows, Yields Dip

As institutional lenders continue their search for higher-yielding assets, second-lien loan issuance in the U.S. has surged over the past few …

Leveraged Loans: Covenant-Lite Structure Gains Ground in Middle Market

Covenant-lite structures, long common among larger loans that are broadly syndicated to institutional investors, are increasingly finding their way …

Preqin/NXT Survey: Direct Lending Investors Increasing Exposure To Lower Middle Market

Interest among direct lending investors is increasingly focused on opportunities in the lower middle market, according to a new survey from Preqin …

Finance

Ares gets a boost to direct lending assets and adds leverage

Economy

Leveraged Loans: As Cash Inflows Ease, Issuer-Friendly Market Trends Toward Equilibrium

The U.S. leveraged loan market, which saw booming activity in the first quarter of 2017, as issuers took advantage of huge investor cash inflows to …

The Cries of Junk-Bond Armageddon - Bloomberg Gadfly

In recent years, whenever U.S. credit markets have become mired in boredom and melted up out of sheer habit, traders start worrying about junk-bond …

U.S. Supreme Court
Finance

Goldman, BofA Cash In on a Leveraged-Loan Frenzy Like No Other

If yield is a drug, Wall Street’s working overtime to supply it.<p>Investors’ global reach for income is giving America’s largest banks their biggest …

Prudential's Peters says risk-reward for junk bonds 'not favorable'

NEW YORK (Reuters) - PGIM Fixed Income senior portfolio manager Greg Peters said on Thursday that he has been reducing his overweight position in junk bonds because the "risk-reward is just not favorable."<p>Peters, who helps oversee more than $100 billion in multi-sector fixed-income portfolios at …

Portfolio Advisors Raises $740M For Second Direct Credit Fund

Connecticut-based private markets manager Portfolio Advisors has raised $740 million in capital commitments for its second direct credit fund.<p>The new …

Despite a general familiarity with the concept of PE, many business owners are less likely to fully appreciate the breadth and depth of the landscape that has developed over the last 20 years.

Increased specialization<p>While organic growth and the use of leverage can generate equity returns, PE investors are increasingly specializing in areas …

Provide

Calpers Is Sick of Paying Too Much for Private Equity

Pension fund’s private-equity returns were 12.3% over 20 years, but they would have been 19.3% without fees and costs<p>The largest public pension fund in the U.S. is studying dramatic changes in how it invests in private equity that would slash payments to Wall Street managers, according to people …

Finance

Buyout firms are paying the highest prices for deals since the financial crisis

Some call it "private equity inflation."<p>It is a problem for the industry that occurs as the market rises over a long period of time. That causes …