Showing posts with label leveraged finance. Show all posts
Showing posts with label leveraged finance. Show all posts
Friday, September 12, 2014

Bubble forming in US middle market leveraged finance

›
US middle market leveraged buyout (LBO) transactions are becoming increasingly frothy. According to the latest data from Lincoln Internati...
Friday, June 6, 2014

Worsening risk/reward fundamentals in US corporate credit

›
US corporate credit markets, particularly high yield bonds, are becoming quite frothy, as risk/reward dynamics continue to worsen. Here ar...
Sunday, June 1, 2014

Failure of Guidance on Leveraged Lending resembles the War on Drugs

›
About two years ago the various US bank regulatory agencies (the OCC, the FDIC, and the Fed) have started pushing through the so-called Gu...
Wednesday, January 29, 2014

HY bond market weathering the storm

›
The US corporate high yield market remains incredibly resilient in the face of increasing global volatility. Year to date the broad HY ind...
Sunday, November 3, 2013

Covenant-light loans on the rise

›
The demand for corporate leveraged loans from both institutional and retail investors ( described here ) continues to stay unusually stron...
Thursday, October 3, 2013

HY spreads now positively correlated to treasury yields

›
Here is further evidence that in this environment treasuries are driving "risk asset" valuations. Corporate HY bond spreads are ...
Tuesday, September 24, 2013

What do CLO managers and retail investors have in common?

›
The answer is, they both love senior leveraged loans... The amount of US leveraged senior secured debt outstanding has risen sharply thi...
Friday, September 13, 2013

Is mitigation of rate risk worth buying HY loans at sub-5% yield?

›
Demand for leveraged (sub-investment grade) corporate loans remains strong. Investors are paying a premium for floating rate (LIBOR+spread...
Sunday, July 21, 2013

CLO leverage rises to 13x

›
A new trend has developed in the CLO market. Some of the top managers are now able to place the single-B tranches with investors, thus cut...
Friday, July 12, 2013

HY outflows hit record. Outperformance narrowing

›
An investment in the S&P500-indexed portfolio right before the financial crisis and held through today would certainly outperform an i...
Sunday, July 7, 2013

Junk bonds outperforming other fixed income markets

›
Here are the latest estimates of performance across the various fixed income markets over the past month. 1-month total return (includ...
Wednesday, May 8, 2013

As lenders look for ways to deploy capital, small businesses benefit

›
US corporations are enjoying some of the lowest borrowing costs in history. Even the more leveraged (high debt to earnings ratio) large an...
Friday, February 1, 2013

Fears of rising interest rates have investors focused on leveraged loans

›
Expectations of rising interest rates in the US are creating demand for traded HY corporate loans (also called "leveraged loans"...
Tuesday, December 18, 2012

US corporate credit market looking extraordinarily rich

›
One of the "side effects" of the Fed's monetary expansion is all the capital flowing into spread products, particularly corp...
Saturday, November 10, 2012

High yield debt issuance in 2012 hits an all-time record

›
High yield bond issuance hit an all-time record in 2012, with $306 billion worth of new HY bonds coming to market by the end of October. I...
Monday, September 24, 2012

Retail investors jump into syndicated loans

›
High Yield corporate loans (sometimes also called "institutional", "syndicated", "leveraged", "par...
Friday, September 14, 2012

Investors fight over "B+" bonds at 5.75%

›
As an example of how frothy fixed income markets have become, Reynolds did a $3.25 billion HY issuance today. They repaid a great deal o...
Sunday, August 12, 2012

The CLO market - then and now

›
After a conversation with Ed Grebeck (Tempus Advisors), I thought it may be helpful to do a quick overview of the evolution of Collaterali...