Archives| PDF| Research |Week of Jan 31, 2022
“Omicron should not significantly alter the overall growth outlook for 2022.”
- Rory Fennessy, economist, Oxford Economics.
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Risky Loans? Think Again
For private capital veterans, the recent spate of market volatility is another opportunity to show strength relative to public asset classes.

The threat of higher interest rates, abetted by spiking inflation, is now fully absorbed in the market. After a rocky week for the Dow and Nasdaq, indices firmed. But uncertainty still reigns and investors globally remain hung between Omicron’s grip and the hope for resumed growth.

Loan investors are looking at this set of circumstances and voting with their feet. Last week $2 billion flowed into retail funds, bringing to almost $7 billion of in-flows for the new year, according to S&P/LCD and Lipper. Total assets in these funds now amounts to $93.6 billion, double the level from only a year ago. In contrast, $13 billion flowed out of retail high-yield bond funds...
New: 2022 Capital Market Outlook 

Topics include: 
Cov-lite trends
Inflation & rising interest rates
LIBOR to SOFR transition
Mega-tranche uni trend
ESG takes center stage
Private Capital Call

Q&As with Anders Ellegaard, the Head of Fixed Income at Industriens Pension.
2022 M&A Outlook
Thank you for joining us. We hope you found the webinar informative. Please click the link below to view the recording.
Readers' Say
This Week’s Question
Which statement best describes your view of the U.S. labor market for the next six months?
(*All responses are confidential.)
Employment will remain below pre-Covid levels
Hiring will pick up in the spring; but employment won’t be at full
Hiring will recover for some industries, not others
Hiring will increase; employment will return to full
Last Week's Results
Which growth industry will show the greatest promise?
Chart of the Week
Leading the Pack
Amid significant market volatility, leveraged loan performance topped other asset classes.
Source: via WSJ
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
What’s the real story on Asia-Pacific?
Our fundraising data for 2021 shows impressive growth on a global basis, but not so much in a region that many claim to have strong interest in...
Leveraged Loan Insight & Analysis
New LBO loan assets increase
as a proportion of total PE buyout activity
Private equity sponsors actively tapped the loan market in 2021 to back over US$196bn in buyout activity, the second highest total on record and just behind 2007’s historic totals north of US$200bn...
The Pulse of Private Equity
Quarterly IRRs returning to earth
PE performance bounced back strongly following the pandemic, but that momentum appears to be slowing. PitchBook’s just-released Global Fund Performance Report estimates a 3.4% quarterly IRR return for Q3 2021...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
DL Deals: News & Analysis
Volatility primes more records
for jumbo unitranche loans
Jittery markets are priming new records for jumbo unitranche financing. At least a few mandates are in the works that exceed Galway Insurance’s $3.4 billion record last year...
Covenant Trends 
Synergies & Cost Savings EBITDA Addbacks
Private Debt Intelligence
Private debt’s expansion in Asia-Pacific
Growth of Asia’s private debt industry has accelerated in recent years, as the corporate debt market shifts from a conservatively priced...
Debtwire Middle-Market
Contact: Hema Oza/Debtwire 
Middle Market Deal Terms at a Glance
Select Deals in the Market
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