US junk loan funds suffer biggest outflows in 4 years Investors withdrew $2.5bn during market plunge on fears of economic slowdown and lower coupons if interest rates fall August 2 2024 Corporate bonds Creditor violence is escalating Hello uptiers, trapdoors, dropdowns, and double dips ...
A credit downgrade wave has begun to hit the highflying $1.4 trillion U.S. leveraged loan market as the Federal Reserve’s rapid pace of interest rate hikes threatens companies hooked on cheap debt. Companies that don’t qualify as investment-grade, perhaps because of a large ...
Leveraged-Loan Market Haunted by Ghost of Crisis Past.The article looks at the long-term impact of the global financial crisis on the leveraged-loan market.Wall Street Journal - Eastern EditionDenningLiam
In the US, leveraged loan issuance in 2023 was down 17.3% year-on-year at US$876.9 billion, while in Western and Southern Europe, issuance declined by 10.2% from US$193.9 billion in 2022 to US$174.1 billion in 2023. In the smaller APAC market, leveraged loan issuance dropped 11% in 20...
A leveraged loan is one that is extended to companies or individuals that already have considerable amounts of debt or a poor credit history. Leveraged loans typically have higher interest rates.
Underwritten Deals:In this type, the arranger guarantees the entire loan amount by entering into the underwriting deal. The arranger must bear any left-out loan if the investors do not subscribe to the loan amount. He can try to sell the remaining loan in the market later on. Even if the...
Four out of the five loan defaults were distressed debt exchanges (DDE), with one Chapter 11 filing from Vyaire Medical. Three out of five issuers were in the healthcare and pharmaceutical sector, the second-largest sector by volume on ourTopandTier 2 Market Concern Loan...
High interest rates weighed down on deals, precipitating a drop in leveraged loan issuance in 2023. However, there are reasons to be optimistic that deal activity will pick up in 2024
After the inflation outlook softened late last year, the leveraged finance market began to bounce back at the start of 2023, giving the German bank’s DCM team the opportunity to apply its expertise.
Partner Vanessa Jackson will speak on the “Financing an Acquisition Using Leveraged Financing” panel. Topics to be discussed include perspectives on strategies and experiences navigating challenging loan market conditions and how terms and participants have changed in light of a more challenging syndicat...