Archives| PDF | Research | Week of July 27, 2020
Is the lower end of market really more risky than large cap market?
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“High valuations suggest fragility and vulnerability to surprises.”
– Katie Nixon, chief investment officer, Northern Trust Wealth Management.
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The New M&A (Second of a Series)
As we discussed last week in our special series on the new COVID-impacted M&A world, the volume of deal flow was off sharply at the onset of the crisis. But as deal makers adjusted to the new normal of business openings (and reversed openings) across the country, conversations are now back to deal processes.

What are some symptoms of the virus on these processes? “The time to market will inevitably elongate,” one top middle market banker told us. “Buyers and sellers will need longer preparation to assess the impact of COVID. The current quarter will be light in terms of volume because of that. What’s unknown is whether, given the ramp-up in cases, the period of uncertainty coming back to the US will stall the market.”

What kind of constraints are drags to M&A? “Travel restrictions are the most obvious,” another banker said...

➢ Next week: How are investment banks managing the financing process?
High Yield Bonds – A New Look
 A series of articles on high yield bonds
Readers' Say
This Week’s Question
Which company will benefit most from the current environment?
(*All responses are confidential.)
Facebook
Amazon
Apple
Netflix
Alphabet (Google)
Last Week's Results
The unemployment rate at the end of third quarter will be…
Chart of the Week
Testing Patients
The prices of COVID tests across the US vary across the largest hospitals surveyed.
Source: The Daily Shot, Peterson-KFF Health System Tracker
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
The long and winding road
Fund managers have found it difficult persuading investors to part with commitments during the pandemic, but demand is still strong...
Leveraged Loan Insight & Analysis
US debtor-in-possession loan volume
surpasses US$10bn so far this year
Completed US debtor-in-possession (DIP) loan volume is on track to reaching the highest annual level since the Great Financial Crisis, as many companies have struggled during the Covid-19 pandemic...
The Pulse of Private Equity
Europe slows down considerably
European PE activity hit a skid in Q2, as expected. According to PitchBook’s recently released Q2 European PE Breakdown , deal volume plunged to its lowest quarterly totals since Q3 2013...
Contact:   Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source:  Lipper
Covenant Trends 
Average Minimum Day-One Capped Basket Capacity, Quarterly
Private Debt Intelligence
The Private Debt Market Continues to Grow
The private debt industry has seen the growth in its AUM accelerate in recent years, and by December 2019 (our latest data available) funds held a total of $854bn in assets under management (AUM)...
Contact: Maria Zapata / Preqin 
Debtwire Middle-Market
Issuers from hard hit sectors
like leisure and energy stay busy in HY market
Source:  Debtwire Par
High yield bond deal flow has eased in July, with US companies issuing USD 18.25bn of high yield bonds, following a record setting month in June when volume topped USD 60bn in June...
Contact:  Colm (CJ) Doherty / Debtwire  
July 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.