Archives| PDF | Research | Week of Feb 10, 2020
European Direct Lending
10 th March, London
From watchlists through secondaries to securitisation, the most in-dept event in the middle market returns.
“You can’t expect the markets to provide the types of return they did in 2019 indefinitely.”
– Jim Baird, chief investment officer, Plante Moran Financial Advisors.
Lead Left Vodcast
Private Credit Myth #2: Private credit is the next market bubble

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Top Ten Myths About Private Credit
(Fourth of a Series)
This week in our continuing special series on the private credit myths, we come to:

Myth #3: “We’re late in the cycle, so loans now are risky.”

Let’s first take the issuer side of the equation. One of the virtues of private credit is being available when public markets are shut or expensive. Invariably those times coincide with periods of uncertain price discovery. Buy-and-hold private credit managers have locked-in capacity. Since the assets are not liquid, transactions can be structured with long hold periods and without relying a market take-out...
Readers' Say
This Week’s Question
If money were no object, I would:
(*All responses are confidential.)
Travel around the world
Start a business
Become a teacher
Learn to play a music instrument
Be a full-time parent
Last Week's Results
Are you personally better or worse off than you were one year ago?
Chart of the Week
Home in the Range
Over the decade, middle market and liquid loan yields have maintained their relative values within a band.
Source: S&P LCD
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
Private debt secondaries: On the cusp?
Now a well-established part of the private equity universe, secondaries remain very much on the periphery of the private debt world. This seemed to be confirmed by Private Debt Investor’s recent LP Perspectives 2020 survey...
Leveraged Loan Insight & Analysis
After record quarter in 4Q19, 
Green & ESG lending off to strong 2020 start
After a strong 4Q19 which culminated in record issuance across the green & ESG markets, 1Q20 issuance has set off at a brisk pace. Nearly US$54bn in green bond volume was completed in 4Q19 via 126 issues to set a new quarterly benchmark...
Contact:   Maria Dikeos / Refinitiv LPC
The Pulse of Private Equity
Cash flow positive
Net cash flows have been hugely positive for private debt funds recently. PitchBook’s Global Private Debt Report showed a record $24.6 billion funneled back to LPs in 2018, alongside a strong start to 2019 numbers...
Contact:   Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source:  Lipper
DL Deals: News & Analysis
Lower Middle Market bustled in January
Direct lending deal flow was by far the busiest that Direct Lending Deals has tracked since launching last September...
Covenant Trends 
Average Minimum Day-One Capped Basket Capacity, Quarterly
Private Debt Intelligence
Private Debt Performance
Lags Other Asset Classes
Private debt funds have experienced the second-lowest spread of returns over the 2007-2016 vintage period among all private capital asset classes, surpassing only natural resources funds...
Debtwire Middle-Market
Margin tightening 
drives institutional loan spreads lower
Source: Debtwire Par
Contact:  Vincent Daigger / Debtwire  
Feb Update: Middle Market Deal Terms at a Glance
Select Deals in the Market
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