SahiBandhu’s Post

“.......The PE market has multiple financing structures, and layers of leverage, much of which are provided by banks. Layers of leverage expose lenders to risks at the portfolio company level, at the fund level, and at end-investor level,”.......

European leveraged loans proved their resilience again in 2023 with double-digit returns – but how might they fare through the many unknowns on the horizon? Learn more in our outlook: https://ow.ly/CfeO30syVZN Past performance is not a guide to future performance.

European leveraged loans proved their resilience again in 2023 with double-digit returns – but how might they fare through the many unknowns on the horizon? Learn more in our outlook: https://ow.ly/VqcI30sz5fI Past performance is not a guide to future performance.

#CLO issuance marching ahead despite sluggish loan issuance. Investors are hunting for yield in an asset class which has shown remarkable resilience over the years - a combination of solid loan underwriting by CLO managers and a long term vehicle which deleverages if losses increase to the point where covenants (triggers) are hit. For excellent CLO research on existing deals in the market, you may wish to review the articles by Poh-Heng Tan, CFA

Leveraged loan issuance in the US and Europe rallied in Q1 2024 as a clearer view of interest rates brought lenders and borrowers back to the market. Read the latest insight from White & Case’s Debt Finance team here. https://ow.ly/BtHW50RSlXL

European leveraged loans proved their resilience again in 2023 with double-digit returns – but how might they fare through the many unknowns on the horizon? Learn more in our outlook: https://ow.ly/MOGs30syY3b Past performance is not a guide to future performance.

Leveraged loan issuance in the US and Europe rallied in Q1 2024 as a clearer view of interest rates brought lenders and borrowers back to the market. Read the latest insight from White & Case’s Debt Finance team here. https://ow.ly/cPGp50RSkeI

European leveraged loans proved their resilience again in 2023 with double-digit returns – but how might they fare through the many unknowns on the horizon? Learn more in our outlook: https://ow.ly/XzNG30syXLw Past performance is not a guide to future performance.

Leveraged loan issuance in the US and Europe rallied in Q1 2024 as a clearer view of interest rates brought lenders and borrowers back to the market. Read the latest insight from White & Case’s Debt Finance team here. https://ow.ly/Z9JB50RSyYE

" Leveraged loan (LL) and high yield (HY) bond default rates in Europe fell in May, according to Fitch Ratings, as a number of defaults transitioned out of our trailing 12-month (TTM) lists. The TTM European developed market HY bond default rate fell to 1.7% in May from 1.8% in April, according to our latest ‘European Distressed & Default Monitor’, despite the addition of two new names. Safari Holding Verwaltun (Loewen Play) and Compact Bidco B.V. (Consolis). Concurrently, the absence of LL defaults in May led to a drop in the European LL TTM default rate to 3.5% down from 3.8% in April and March 2024. Total bond volume from issuers on our Top and Tier 2 Market Concern Bond lists as a share of the overall European HY bond universe rose to 7.3% in May from 6.1% in April. The prolonged higher cost-of-capital environment continues to weigh on debt-service and interest-coverage ratios for challenged speculative-grade corporates, supporting our expectations of a 4% default forecast for 2024. We escalated Intrum AB (CCC) onto our Top Market Concern Bond list from Tier 2, while Altice International and iQera were added to Tier 2. Tele Columbus and Atalian were added back onto Tier 2 post completion of their distressed debt exchanges that only partially mitigated default risk. Conversely, total loan volume from issuers on our Top and Tier 2 Market Concern Loan lists as a share of the overall European LL universe modestly improved, falling to 3.6% in May from 3.7% in April. We moved Kleopatra and Stonegate Pub Company Limited (B-/Rating Watch Negative) to the Top tier for syndicated, while adding Altice International to Tier 2. For the full Market Concern Loan and Bond lists, TTM default activity and more data on the European corporate default market, please open the excel file here. The report can be found at www.fitchratings.com or via the link above." #fitchratings #creditratings #leveragedloan #leveragedfinance #levfin #europeanmarket #highyield