- Emerging markets (2)
- High yield bonds (4)
- Investment grade credit (1)
- Structured credit (3)
- CLO (15)
- Distressed debt (1)
- Credit derivatives (2)
- Leveraged loans (9)
- Marketplace lending (1)
Investors take comfort from an active secondary market, but liquidity can be a mixed blessing7 days ago
One of the most interesting characteristics of credit behaviour during the coronavirus era has been the momentum of junk bonds, with sharp changes in issuer and investor confidence around the asset class driven by technical factors: near-zero interest rates, the Fed’s support of fallen angels and skewed-to-worse ratings for leveraged loans
Past returns: Indirect lending1 month ago
Five years ago in Creditflux we reported how banks were playing a role in European direct lending — an industry borne out of the fact that banks had reduced appetite for lending to small and mid-sized companies
Liquidity is king. A company with a sound long-term value proposition may not last the next few weeks2 months ago
For borrowers — and credit providers seeing revolvers drawn down — liquidity is the greatest concern
The opportunities to build par and spread within a CLO haven’t been this plentiful since 20093 months ago
Last year’s CLOs could become the benchmark for manager performance
Points up front: Despite the fees, European SME CLOs are the future3 months ago
Producing the first post-crisis securitisation of small and mid-sized European loans was a monumental effort for Be-Spoke Capital.
Private credit is not overcrowded — there is four times as much private equity dry powder4 months ago
With much negative reporting around private credit, our columnist debunks oft-heard complaints
They said it: "How about a carbon reduction covenant?"4 months ago
In a social media post, Bfinance’s Trevor Castledine recalls a conversation with a private debt manager who claimed to be powerless when it comes to influencing borrowers over ESG. The lender’s response was: “Er…”
Points up front: Credit picking follows on from investor picking4 months ago
Credit picking skills will be important this year amid heightened idiosyncratic risk, so everyone seems to say. But Ares Management, one of the biggest names in direct lending, has demonstrated that asset managers can also be picky with the mandates they take on, when the firm walked away from a private debt mandate with London CIV in January.
Points up front: “Thanks for the loan.” “What loan?”5 months ago
Direct lending sounds simple enough; borrowers have direct engagement with a small set of lenders and negotiate a private agreement for the long-haul. Sounds easy enough, except when the lender claims to have no idea about the deal you’ve just announced.
‘Buying the dip’ is going to be a poor investment strategy when the next downturn comes6 months ago
The next credit downturn will be shallower but more prolonged than the last, so what works will be different, too
Robert Crowter-Jones of Saranac Partners takes our credit quiz8 months ago
The manager, not the market, decides value in direct lending8 months ago
Mid market loan spreads are contracting, but that’s a reflection of low volatility not excess cash
In response to a Creditflux article published on 23 October ('NEPC sees bias towards private markets despite lower return expectations'), an anonymous comment warned of the dangers of direct lending.8 months ago
Trent Webster, Senior investment officer for strategic investments, State Board of Administration of Florida, takes our credit quiz9 months ago
Past returns: From zero to $7.6 billion in five years9 months ago
Five years ago in Creditflux we reported that Angelo Gordon was planning to move into US direct lending. Shortly after that the firm created a middle-market subsidiary known as Twin Brook Capital Partners and drafted in Trevor Clark and Chris Williams to lead the venture after the pair had left Madison Capital in 2013.
Negotiating terms up front and getting comfortable with the precedent document is key10 months ago
Private equity sponsors are struggling to buy low and sell high, so they are trying to take advantage of weak debt covenants
Points up front: What’s the word for when agreements evolve?10 months ago
New jargon has a habit of sticking in the credit market. Perhaps the buzz-phrase of 2019 is ‘covenantive easing’, a term concocted by Churchill Asset Management’s Randy Schwimmer and one that he’s pushing in his Lead Left publication.
Investors are very focused on ESG: it’s driving them and us, and rightly so11 months ago
My career in credit began just over 20 years ago, working in KPMG’s restructuring team and advising banks on their troubled loans. It was a pretty steep learning curve as every company was teetering on the edge of bankruptcy. But I learned that controlling cash flow is vital and how to prioritise what’s most important about a company. I still use those same skills every day.
Past Returns: German direct lending’s overhaul11 months ago
In Creditflux five years ago we reported on German fund managers campaigning against regulations which dictated that funds require a banking licence to act as direct lenders. In 2016 they got their way as the German Banking Act stipulated that the banking licence requirement would not be imposed if a direct lender was authorised under the Alternative Investment Fund Managers Directive.
It’s important for direct lenders to strike a chord with borrowers when they pitch flexible financing solutions. But for Churchill chief executive officer Ken Kencel, it’s equally important to play major chords outside work.
There’s pain to come for those who have become too greedy1 year ago
Stephen Catling of Connection Capital takes our credit quiz
PE hold periods have shrunk but fast acquisitions can lead to botched integrations1 year ago
Buyout multiples are likely to stay high – but moving fast and specialising can help firms make money
Continuous par build can provide a rainy-day fund for when downgrades to triple Cs pour in1 year ago
If CLO managers are preparing for mass downgrades to triple C loans, then trading gains and thick OC cushions are the best defences
Experience has taught me to be sceptical of second lien loans1 year ago
Alex Jackson takes our credit quiz
Points Up Front: The best opportunities are way, way over there1 year ago
Competition was a big theme at last month’s Creditflux European Direct Lending conference. The market has evolved to the point where new entrants are on the fundraising trail, which could lead to a compression in any illiquidity premium prevalent in direct lending loans
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