Archives| PDF | Research | Week of Apr 6, 2020
“Selloffs end when the problem that caused the selloff is under control.”
– Michael Kantrowitz, chief investment strategist, Cornerstone Macro.
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The Great Stay-In (Fifth of a Series)
“As goes COVID-19, so goes the nation.”

Paraphrasing the famous 1950’s dictum on General Motors’ relationship to the welfare of America highlights how the coronavirus has hijacked all aspects of the economy.

There’s consensus that once the disease runs its course, commercial activity will come back. It’s also agreed that between now and then GDP will be negative, perhaps alarmingly so. What’s not clear is how sharp or long the downturn will be. Or whether the recovery will be weak, temporary, or pick up where February left off.

For guidance we turned to Brian Nick, Nuveen’s chief investment strategist. Brian is a frequent commentator on top media outlets. He kindly offered to help our readers understand better the current economic and markets dynamics...

➢ Next week: We continue our conversation with Brian Nick on the economy.
Readers' Say
This Week’s Question
What will be the biggest advancement due to Covid-19?
(*All responses are confidential.)
Rise of telemedicine
Broader acceptance of virtual meetings
Accelerated development of VR and AI
Improved digital infrastructure
Boost to online shopping
Last Week's Results
When will it be declared safe to go back to work?
Chart of the Week
Labor Pains
US jobless claims totaled 10 million in two weeks; it took six months to hit those levels during the Great Recession.
Source: Bloomberg
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
Fundraising in the time of coronavirus
Private debt funds are finding it tough to raise capital, but this was true before the virus struck...
Leveraged Loan Insight & Analysis
New money lending for MM sponsored deals 
drops for third quarter
New money lending in the syndicated loan market backing middle market sponsored deals fell for the third consecutive quarter in 1Q20. Issuance only reached US$7.6bn, down 15% from 4Q19 levels and down 13% year-over-year...
Contact:   Fran Beyers / Refinitiv LPC
The Pulse of Private Equity
Exits are already down
Exit activity is bound for a tough year, as preliminary Q1 numbers confirm. Historically, first quarter exit totals are typically on the low end anyway; it’s common to see a lull coming off of fourth quarter sprints...
Contact:   Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source:  Lipper
Covenant Trends 
Percentage of Loans with F&C Tranche Growers
DL Deals: News & Analysis
Monthly LBO lending decelerates,
yet 1Q20 finishes strong; Outlook bleak
LBOs decelerated in March, to 47% of monthly U.S. direct lending volume, according to Direct Lending Deals...
Private Debt Intelligence
The impact of COVID-19 on capital calls,
distributions, and net cash flows
A Preqin-FRG forecasting model shows that capital calls will surge in 2021 as the global economy rebounds. Focused on 2017-2019 vintage private capital funds...
Contact: Maria Zapata / Preqin 
Debtwire Middle-Market
Contact:  Hema Oza / Debtwire  
Middle Market Deal Terms at a Glance
Select Deals in the Market
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