Leveraged Loans

Leveraged Loans


S&P Global Market Intelligence's LCD News is leveraged loan/high-yield bond, distressed debt news/analysis http://www.leveragedloan.com More: @spgmarketintel

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PE firms/their LPs are increasing focus on ESG when undertaking #leveragedloan  and #highyieldbond  debt in Europe. Early stages now but some expect ESG-linked pricing to become as common as cov-lite (which is all but standard) @NinaFlitman 

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CLOs For Dummies - "Virtual banks," structure & liabilities, impact of credit losses, much more courtesy Friend of LCD Steven Bavaria#leveragedloan  #highyield 

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US #leveragedloan  asset class returning 0.55% in Feb, 1.75% YTD. Riskier debt continues to roll, with triple-C's returning 1.77%/5.38%

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NYT on today's high-flying US #leveragedloan  market: How private equity firms are taking advantage of investor demand to complete recap/dividend deals @MattGoldstein26 

Macy's bond jumped in trading yesterday after the retailer easily beat earnings expecations and posted a rosy outlook for this year. "We're targeting investment grade metrics," says Macy's CFO $M #retail  #highyield 

US default rate at year-end. Pessimistic Scenario: 9.5% (that might entail worsening/mutation of virus + lockdowns, or Fed eases off gas. Optimistic Scenario: 3% if fixed-income keeps on, vaccines take root + more stimulus (S&P)

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US nat'l debt hit 100% of GDP recently, the first time that's happened since WWII. Investors don't seem concerned. Should they be? Another Deep Dive from LCD's Jack Hersch: #highyield  #leveragedloan  #economy 

Another sign of a red-hot US #leveragedloan  market: Repricings, where issuers take advantage of investor demand to trim the LIBOR spread on an existing credit (this is faster/cheaper than undertaking a new loan). More:

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Another $686M net inflow of retail investor cash into US #leveragedloan  funds this past week (floating rate debt). That's +$6.4B YTD. Meanwhile, in the fixed-rate #highyield  bond segment ...

US leveraged finance issuance continues hot, the #leveragedloan  segment in particular tho refinancings, and repricings (not in chart), comprise much of the action. Loans: $110B YTD. #highyield : $77B YTD

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A move into June allows pandemic-only look at US #leveragedloan  mart. Those downgrades all are talking about? They've outnumbered upgrades by a surreal 43:1 over past 3 months. In Great Financial Crisis this metric topped out at 8.45:1 @distressedlcd 

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Coranavirus fallout: $672B of $1.2T US #leveragedloan  mart is now categorized as distressed debt. Easily the most ever by amount, but significantly less in share than in '08. "Distressed" here = trading market price of less than 80 cents on dollar

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27 US #leveragedloan  defaults in 2Q20, totaling $23B, the most since 2009. Default rate now stands at 3.23%. That's a five-year high, and up from 1.84% at end of 1Q @distressedlcd 

The number of US #leveragedloan  issues trading in the secondary below 80 cents on the dollar - a common measure of distress in the asset class - continues to climb

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About a month ago 60% of the $1.2T in outstanding US #leveragedloan  debt was priced at 100 or better. A week ago it was 38%. After today just 10% of that debt is priced at par #COVID19US  #economy 

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Nearly 77% of all outstanding US #leveragedloan  debt is covenant-lite. That's (yet another record)

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A new record: 79.6% of the $1.8 trillion in US #leveragedloan  outstandings is cov-lite. That's about $940B. The bulk of that ls riskier debt, from issuers rated B and B-

1Q earnings growth for US loan issuers was negative; that hasn't happened since the recession (free)

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Cov-lite now accounts for 77% of all US #leveragedloan  outstandings (in a $1T market, remember). That's yet another record

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