Archives| PDF| Research |Week of Oct 18, 2021
November 10th, Virtual Event
Through a stimulating series of panels and fireside chats, attendees will get to understand the opportunities, key trends, and best practices of this asset class.
“Now supply-chain disruption, labor issues, input costs, and wages are slowing the economy, not demand.” - Rick Rieder, head of fixed income, BlackRock.
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A Market in Full (Second of a Series)
News reached us recently of a young walrus that had wandered south from his Arctic range in search of ice floes. Landing in Ireland, Wally began boarding luxury yachts. The property damage turned the whiskered wayfarer from “visiting celebrity to public enemy number one.”

It all worked out, though, when a marine biologist enticed the walrus onto a pontoon, which was hauled out of the harbor. Wally was last seen frolicking off the coast of Iceland. “He avoided sinking any boats while he was there,” one rescuer happily reported.

In the world of ultra-low interest rates, credit investors are similarly tempted off their usual hunting grounds. In part this is due to unusual economic conditions. On the one hand, consumers are still spending at higher levels than a year ago. But supply chain disruptions are acting to hold back real growth in many sectors...
  • Reflation Nation
  • Inflation Worries: Real or Imagined?
  • Inflation: A Transitory Thing
  • Not Your Parents’ Inflation
  • How Inflation Affects Asset Performance
Private Capital Call
September 2021 – James Rooney, CEO and Nicolae Cristea, MD, Investment Management, Corient Capital Partners
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Chart of the Week
Pay to Play
In recent months wage growth has spiked and is closing in on price levels.
Source: Nuveen, Federal Reserve Bank of Atlanta, BLS, Bloomberg
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
Fundraising puts the pandemic in the rear mirror
The year as a whole looks set to move comfortably past the total raised in 2020...
Leveraged Loan Insight & Analysis
Wholesale is the top sector for
non-sponsored MM volume this year
US syndicated middle market non-sponsored volume totaled US$82bn in 1Q-3Q21, an over 80% increase year-over-year...
The Pulse of Private Equity
The exit bonanza continues
Through Q3, PE exit activity is well into record territory, according to PitchBook’s latest US PE Breakdown. We’re estimating $638.3 billion in exited capital so far, including a blockbuster $283.7 billion exited in the third quarter alone...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Percentage of Loans that Cleared with 
the Least Protective Documentation Scores (5/5+/4-)
Private Debt Intelligence
North America and Europe
see number of fund closes rise
A total of 22 North America-focused private debt funds closed in Q3 2021, a 47% increase on the 15 funds that closed during the same period in 2020...
Debtwire Middle-Market
Sponsors cash out on demand
for leveraged loans in 2021
Source: Dealogic, Debtwire Par
Year-to-date dividend recapitalization financings have surpassed the full-year figures seen in the previous five years, as borrowers and financial sponsors alike capitalize on investor demand for leveraged loans...
Reorg Credit Intelligence
Jababeka Contemplated $350M Issuance Likely Negatively Affected By Worsening Leverage, Limited Financing Diversity, Decreasing Recurring Revenues as Power Plant Faces Oversupplied Grid; Improving Marketing Sales, Substantial Landbank Positives
Indonesian industrial real estate developer and infrastructure provider PT Kawasan Industri Jababeka Tbk (Jababeka) is in the midst of seeking shareholders’ approval to issue up to $350 million of new notes in order to refinance its existing $300 million 6.5% due October 2023 senior notes. Jababeka’s leverage metrics and recurring revenue streams have worsened over the past few years and it has demonstrated limited diversification of financing sources that may be necessary for it to successfully tap USD debt capital market for its upcoming refinancing exercise. Click through to read our full analysis here.
Contact: Matt Danese/Reorg 
Oct 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.