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PDF | Research | Week of Jan 16, 2023

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Quote of the Week

“The most important ingredient, in a way…is confidence.”

– William Regner, partner, M&A,Debevoise & Plimpton.

 
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2023 Outlook for M&A

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M&A Outlook for 2023 (Part Two)

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Any attempt to predict what the future investing climate will be is bound to be an iffy proposition. This point was driven home to us as we reviewed past candidates for Lead Left Quotes of the Week that didn’t make the cut for one reason or another.


For instance, back in May 2021 one CIO of a large private wealth manager predicted:

“Inflation will be higher. At a dangerous level? No.” Another fixed income head at a top global asset manager wasn’t so sure. “There is so much dislocation in the economy…that it will take at least six to 12 months before we get a clear view of the underlying inflation trend.”


Prescient too was Mohamed El-Erian of Allianz. “The last few years have been great for investors because everything went up,” he said back then...

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Chart of the Week

Rate Expectations

Despite the Fed’s hawkish jawboning, market rate expectations show little increase.

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Source: Nuveen, Bloomberg

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SFNet’s Asset-Based Capital Conference 2023

January 31 to February 1, 2023 | Encore at the Wynn, Las Vegas, NV

 

SFNet’s Asset-Based Capital Conference 2023, “The Great Reboot,” is about setting new strategies for a new world.

 
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Stat of the Week

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Loan Stats at a Glance 

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PDI Picks

On the minds of LPs

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Over-allocation, rising interest rates and ESG are some of the key investor priorities in 2023...

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Leveraged Loan Insight & Analysis

US secondary market rallies to begin the year

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The US secondary loan market has rallied to start the year. The LPC 100 cohort of the largest, most widely quoted loans is up 142bp so far in January to 92.7, and middle market loans are 34bp higher to the 92.8 context...

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Contact: Hugo Pereira/ Refinitiv LPC

The Pulse of Private Equity

2022: The year of the smaller deal

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A down year, to be sure, but a healthy one by historical standards. PitchBook’s just-released US PE Breakdown, the annual version, estimates $1.01 trillion in capital invested in 2022. That’s down from 2021’s $1.26 trillion reading...

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Contact: Alex Lykken / PitchBook

Covenant Trends 

Percentage of Loans that Cleared

with the Least Protective Documentation Scores (5/5+/4-)

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Contact: Steven Miller / Covenant Review

High-Yield Bond Statistics

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Weekly fund flows source: Lipper
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Private Debt Intelligence

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Private debt funds grow larger in slower market

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Private debt fundraising slowed down in 2022. The number of funds that raised capital fell 30% from 283 in 2021 to 199 in 2022. However, the average size of private debt funds has grown to a record $1.3bn. As a result...

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Contact: Valerie Kor / Preqin

Debtwire Middle-Market

Leveraged loans & high yield bonds

backing buyouts decline in 2022

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Source: Debtwire Par

New issuance in the leveraged loan and high yield bond markets took a dive from last year’s totals as the pressures besetting the market remained persistent. Institutional loan issuance declined 68% to USD 294.4bn...

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Contact: Vincent Daigger/ Debtwire 

January Update: Middle Market Deal Terms at a Glance

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Select Deals in the Market

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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.