BDC Magazine: Leveraged Finance

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

Market Pros: US Leveraged Loan Default Rate to Remain Low, but Creep Higher - LeveragedLoan.com

Portfolio managers of U.S. leveraged loans expect default activity to continue its modest ascent over the next 18 months, with the long-anticipated …

Titans of Junk:

Behind the Debt Binge That Now Threatens Markets<p>By Shannon D. Harrington, Sally Bakewell, Christopher Cannon and Mathieu Benhamou<p>Masayoshi Son and …

banks

US middle market loan pricing ticks up

NEW YORK, July 11 (LPC) - US middle market loan pricing is increasing at a slower rate than the larger US leveraged loan market, where assertive investors with more deals to choose from are winning concessions on pricing and documentation.<p>Capital remains abundant in middle market lending and fewer …

Investing

US Leveraged Loan Issuance Totals $274B in 2018's First Half - LeveragedLoan.com

Issuance of U.S. leveraged loans totaled $274.4 billion in 2018’s first half, down only 8% from the record $297 billion seen during the same period …

Leveraged Loans Margins on Track to Fall Below Pre-Crisis Lows

The leveraged loan market may not be in a bubble, but it sure looks frothy as spreads tighten to levels unseen since before the financial crisis.<p>The …

With Defaults Low and Oil Prices Rising, Distressed Debt Continues to Disappear

Thanks to a decade-long stretch of low interest rates, which has made it easier for troubled companies to kick the debt can further down the road, …

Leveraged Loans – Amid Continued Investor Demand, Second-Lien Issuance Surges

The leveraged loan markets in both the U.S. and Europe have seen a boost in the issuance of second-lien activity as institutional investors and …

Leveraged Loan Maturities Move Further Out on the Horizon

The U.S. leveraged loan market made headlines recently when it officially became a $1 trillion asset class, buoyed by the dizzying pace of issuance …

Lower Middle Market Too Hot to Touch

The M&A market as a whole remains white hot and the lower middle market is no exception. Sellers are undoubtedly benefiting from today’s strong …

Please don't tell individual investors to buy leveraged loans

Illiquid, opaque asset class meets ultra-liquid structure with constant liquidity. What could go wrong?

It’s Official: US Leveraged Loans Are a $1 Trillion Market

It’s official: The U.S. leveraged loan market is a $1 trillion asset class. As of April 27, the amount of outstanding institutional credits …

CLO Bondholders Unlikely to Help Managers Fix Libor Problem

CLO investors are likely to oppose having their payments pegged to the one-month Libor rate, which will crimp efforts by managers to ease the growing …

More Risk, Less Return: Spread vs Leverage on US LBO Loans

First-lien leverage on loans backing U.S. LBOs has crept to a record-high in 2018 as yield-starved institutional investors flock to these deals, …

Private Equity? It's More Like Pirate Equity

LBO sponsors will come under much-needed scrutiny as more of their debt-laden deals fall into bankruptcy and job losses mount.<p>Claire’s Stores filed for bankruptcy last week, one of a small but growing cadre of failed private equity-backed retail firms led most notably by Toys ‘R’ Us, which is now …

Soaring U.S. Libor Trickles Into Funding Markets Worldwide

From Riyadh to Sydney, short-term funding markets worldwide are starting to feel the effects of soaring U.S. dollar Libor rates.<p>The surge in recent …

US Leveraged Loan Default Rate Hits 3-Year High, Courtesy iHeart

The default rate of the S&P/LSTA Leveraged Loan Index jumped to its highest level in three years after iHeartMedia, one of the largest highly levered …

The End Is Near For The U.S. Credit Cycle. Are You Prepared?

<i>By Douglas J. Peebles</i><p>The US corporate credit cycle is nearing its end, and the cycle in parts of Europe isn't far behind. This can create treacherous …

Buyout feast expected as Trump alters debt rules

The next buyout boom may be ready to start.<p>A President Trump-appointed regulator last week lit the fuse on what some on Wall Street believe will …

Problem with rising rates: Corporate America has binged on debt

Corporate America, egged on by ridiculously-low borrowing costs, has built up more debt than any time since the end of the Great Recession.<p>The credit binge has allowed companies to grow faster, invest in the future and reward shareholders with huge dividends and share buybacks.<p>Yet elevated levels …

LPC: High demand helps US companies to cut leveraged loan pricing | Reuters

NEW YORK, Jan 26 (Reuters) - The US leveraged loan market has opened with a bang, allowing junk-rated companies such as food packaging company Crown Holdings to reduce pricing further amid strong demand for floating rate assets.<p>Ba2/BB rated Crown Holdings had an investor count of more than 250 for …

Hot Loan Market Not Living Up to Promises

Wall Street has a long history of selling products that promise protection that inconveniently runs out just as investors need it. The hot leveraged …

Secondary Buyouts Dominate LBO Activity in Leveraged Loan Mart

Rallying stock markets and sky-high business valuations led cash-rich private equity firms to turn to other sponsors for acquisition targets in 2017. …

Citigroup Predicts That This Year Will Have a Record $140 Billion of CLOs

Citigroup Inc. analysts have come up with Wall Street’s most bullish forecast yet for 2018 collateralized loan obligation sales: a record-breaking …

Fed Working on Proposal to Ease Up on Bank Leverage Limits

The Federal Reserve is working to relax a key part of post-crisis demands for drastically increased capital levels at the biggest banks, according to …

The Great Credit Dilemma: When to Quit After Historic Rally?

After mopping up bumper returns from central bank stimulus for the best part of a decade, credit investors in 2018 look cornered.<p>On the one hand, …

Loan covenant quality hits weakest level on record: Moody’s | Financial Times

Investor protections in the $960bn US leveraged loan market deteriorated to the weakest level on record in the third quarter of 2017, according to …

The City

Wall Street's Hot New Money Machine Starts With a Single Loan

When a group of banks led by Credit Suisse and including Barclays cut a $1 billion check to finance a buyout by Apollo Global Management back in …

New Research Brings Private Company Data into Public View

Corporate finance, security analysis and asset pricing rely on investors’ ability to evaluate portfolio choices, yet investing in the private markets …