Archives| PDF | Research | Week of May 18, 2020
“Wall Street has very little to do with Main Street.”
– Joachim Klement, market analyst, Liberum Capital.
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High Times (First of a Series)
One of our faithful readers emailed the other day: “Hey, I noticed it’s been a while since you wrote about the high-yield market. Would love to get your insights on what’s going on there. Seems like a lot of activity recently. Trying to figure it out. Thanks.”

Help is on the way. For assistance, we recruited Matthew Fuller of LevFin Insights, our content partner for all things high-yield.

Matt, give a sense of that market from your perch. “From the perspective of high-yield investors, it’s a great time to be involved,” he told us in an interview this week. “We were pretty much shut down in March. Total volume was only $4 billion, which is very paltry. Zero deals for three weeks. That’s shocking, but one week shorter than December 2018, which marked the lowest volume since the GFC

➢ Next week: We continue our look at the HY bond market with more deal info.
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Last Week's Results
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Chart of the Week
Junk Food
High-yield bond issuance cratered with the onset of COVID-19 in March, then rebounded sharply in April.
Source: LevFin Insights
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
Will coronavirus prompt a new wave of distress?
One of the long-term impacts of the global financial crisis was a sharp uptick in non-performing loans as lax underwriting standards prior to the crisis...
Leveraged Loan Insight & Analysis
MM Sponsored dealflow pipeline 
expected to remain anemic through summer
Middle market syndicated loan issuance remains extremely thin for sponsor-backed deals so far in 2Q20. Volume has only reached about US$1.6bn so far in 2Q20 with zero opportunistic flow such as refinancings or dividend recaps...
Contact:   Fran Beyers / Refinitiv LPC
The Pulse of Private Equity
April was down, as expected
An early look at April 2020 deal volume shows the significant decline we’ve all been anticipating. Only 158 transactions were completed last month, less than half of the typical monthly volume we were seeing pre-pandemic...
Contact:   Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source:  Lipper
Covenant Trends 
Percentage of Loans
with Asset Sale Sweep Step-downs
DL Deals: News & Analysis
Non-Accruals across lower middle market portfolios rise to 7.5%
Effects of the coronavirus lifted the average non-accrual rate across lower middle market BDC portfolios by 1.7%, to 7.5% in the first quarter...
Private Debt Intelligence
Fund Managers Response to COVID-19
Although fundraising is slowing in the wake of the economic fallout from COVID-19, most alternatives fund managers appear to be staying the course...
Contact: Maria Zapata / Preqin 
Debtwire Middle-Market
Contact:  Hema Oza / Debtwire  
May Update: Middle Market Deal Terms at a Glance
Select Deals in the Market
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