Leveraged Radar’s Post

For the latest leveraged finance news and trends read our half-year LFRD Wrap ⬇

Competition Continues for Buyout Financing. 2024 is shaping up to be a stronger one for the broadly syndicated loan market (BSL) compared to 2022 and 2023. Attractive yields and spreads are causing a strong demand for floating rate transactions, which has helped to enable a resurgence of activity amongst the largest group of buyers in the BSL market – CLOs. Prices are strong, too; according to JPMorgan, on 24 April for example, 46.8% of the US leveraged loan market was trading above Par, with a further 29% trading between 99-Par. Reported by Amber Quinn. For Bloomberg users: https://lnkd.in/eDmfSiV9 #EMEA #LeveragedLoans #Loans #CapitalMarkets #SyndicatedLoans #HighYield #Bonds #DebtCapitalMarkets #USD

BSL Market Sees Increase in "New Money" Issuance It has been an interesting year for the Broadly Syndicated Loan (BSL) market to say the least.   2024 has seen consistent frenetic activity, with the leveraged loan pipeline regularly having 30 or 40+ deals in it at any one time.   As LFRD has covered at length though, much of this activity has been directed towards repricing existing deals, with repricing volumes currently standing at USD527.87bn-equivalent from 389 deals in 2024.   There have been very little “new money” deals for M&A and buyout deals this year, although this began to change somewhat in July, with 20 deals backing LBOs/SBOs and M&As worth USD25.27bn-equivalent, representing a quarter of the volume for that month. Reported by Jack Unwin. For Bloomberg users: https://lnkd.in/eDmfSiV9 Read the full article on our Leveraged Finance (LFRD) Bloomberg page or sign up to this service by contacting sales@bondradar.com.   #EMEA #LeveragedLoans #Loans #CapitalMarkets #DebtCapitalMarkets #MergersandAcquisitions #SyndicatedLoans #LBO #SBO

The share of at-risk issuers designated “Weakest Links” in the European leveraged loan market fell again in the first quarter of 2024, echoing the positive momentum the asset class has seen this year, amid shrinking credit spreads and growing investor appetite for risk. That's not to say the rising credit tide is lifting all borrowers. The one Weakest Link leaving the sample did so after a default, and some companies are indeed feeling the strain of higher-for-longer rates. PitchBook LCD's Taron Wade has the complete analysis: https://lnkd.in/eC6txQQZ #credit #leveragedloan #distresseddebt

Leveraged Finance Weekly Review 26 July - 01 August   The leveraged loan market, particularly the North American side of it, continues to motor along without a break in sight. 24 leveraged loans priced this week, split between 18 in North America and six in Europe, with seven of these deals for repricings. Twelve dollar high yield bonds also priced, alongside two euro and two rare sterling deals for Stonegate Pubs and Ocado. Reported by Jack Unwin, Amber Quinn and Abraham González. For Bloomberg users: https://lnkd.in/eDmfSiV9 #EMEA #LeveragedLoans #Loans #CapitalMarkets #SyndicatedLoans #HighYield #Bonds #DebtCapitalMarkets #USD 

European leveraged loan market soars in 2024! 🚀 H1 2024 saw €103bn in European term loan B issuance, a 15% increase from 2021. Key highlights: 💸 Repricing: February and May-June repricings cut margins by ~60bps, with 9fin data showing another €19bn could reprice in the near-term. 🔗 Tighter single-Bs: Q2 margins tightened to 410bps, down from 465bps in the same period in 2023. 📈 LBO surge: Leveraged buyouts exceeded 2023 levels, but new money is still limited. Dive into the detailed analysis and insights by Josh Latham, Alessandro Albano, Laura Thompson, and Karis Hustad. Read the full report here 👉 https://lnkd.in/eYhatt-9

The US #leveragedloan default rate, including distressed exchanges, hit 4.32% in February, its highest level in three years, as the use of these transactions to manage liabilities continues (there were four distressed exchanges last month). One result: The gap between incidence of this activity and payment defaults proper continues to widen. https://lnkd.in/enBz6UCB #leveragedloans #credit #defaults PitchBook

Flash Info #245- Capital Market Interest Rate Swaps: An interest rate swap is a financial derivative contract where two parties agree to exchange one stream of interest payments for another, based on a specified notional amount of principal. The most common type is a fixed-for-floating interest rate swap. 1. Two parties, let's call them Party A and Party B, agree to the terms of the swap, including the notional principal amount, the fixed interest rate, the floating interest rate index, and the payment dates. 2. Party A agrees to pay Party B a fixed interest rate on the notional principal for the life of the swap. 3. In exchange, Party B agrees to pay Party A a floating interest rate (typically a benchmark like LIBOR or SOFR) on the same notional principal. 4. On each payment date, the two interest payments are netted against each other, and the party with the higher interest obligation pays the difference to the other party. CapitalMarkets #PrivateEquity #InvestmentGroup #FinancialMarkets #InvestmentStrategy #AlternativeInvesting #EquityInvesting #VC (for venture capital) #PE (for private equity) #FinTech #AngelInvestors #InvestmentManagement #PortfolioManagement #AssetManagement #WealthManagement #FinancialAdvisory #InvestmentBanking #MergerAndAcquisition #leveragedBuyout #LBO

Configure Managing Director Joseph Weissglass recently spoke with LSEG Loan Connector to discuss compression in private debt spreads as a wave of refinancing hits the market and competitive pressure increases. Joseph provides insight into the possible effects of the newly intensified competition within the broadly syndicated market. To read the full article, click here: https://lnkd.in/e4VrQjZN #privatedebt #privatecredit #privateequity #investmentbanking

Junk bond and leveraged loan issuers have cut ttheir 2024-2026 maturity wall by 40% from a year ago, according to BOA estimates. "This episode represents one of the most aggressive instances of maturity extension in the history of leveraged finance." #leveragedfinance #leveragedloans #maturityextension