Archives| PDF| Research |Week of Sept 21, 2020
“Even though employment is still rebounding, there’s still a long way to go.”
– Michael Pearce, senior US economist, Capital Economics.
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Private Credit – Better than Ever
(Fourth of a Series)
We mentioned last week our turn at the SuperReturn North America Virtual conference. There we heard participants weigh in on various aspects of the pandemic on private credit, including impact on terms, structures and portfolio performance.

But what about new business? A lot depends on managers’ strategies. Over the past five years, institutional investors have expected a downturn. They pointed to various signs, including overleveraged borrowers and weakened covenants, suggesting excess in the loan market.

As time passed, significant capital was raised to take advantage of fall-out from a recession when it came...

➢ Next week: Will the worst fears of private credit investors come true in this recession?
Readers' Say
This Week’s Question
Direct Lenders: For this vintage we are most concerned with…
(*All responses are confidential.)
Compressing Spreads
Higher Leverage
Portfolio Performance
Valuations
Covenants and Terms
Last Week's Results
PE Investors: For this vintage we are the most concerned with....
Chart of the Week
Dough Rising
Pent-up private debt appetite is driving third quarter fundraising, though mostly on the distressed front.
Source: Refinitiv LPC
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
NPLs: Covid-19 creates new round of
buying prospects
The coronavirus crisis may not be as bountiful for Europe’s NPL investors as the GFC, but will offer select opportunities...
Leveraged Loan Insight & Analysis
Libor floors remain in institutional market, 
but are shifting lower
One of the many effects brought by the pandemic was the precipitous drop in Libor rates, which had already been in a steady decline for a while...
The Pulse of Private Equity
Healthcare investment outpaces overall PE market
PE activity in the healthcare space has outpaced the broader PE market since 2009. A new PitchBook analyst note, to be released tomorrow morning, chronicles the trend: tailwinds include an aging population, an uptick in global per capita healthcare spending...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Percentage of Loans with F&C Tranche /
Pro Forma EBITDA >0.9x (All Deals)
Private Debt Intelligence
Private Debt-Backed Deals in Europe
Despite the impact COVID-19 has had in deal activity, the European private debt-backed deal value has soared in 2020...
Debtwire Middle-Market
Contact: Hema Oza/Debtwire 
Sept Update: Middle Market Deal Terms at a Glance
Select Deals in the Market
This publication is a service to our clients and friends. It is designed only to give general information on the market developments actually covered. It is not intended to be a comprehensive summary of recent developments or to suggest parameters for any prospective financing opportunity.