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PDF | Research | Week of April 10, 2023

Quote of the Week

“I'm in the camp that bad news is bad news.”

– Marija Veitmane, head of equity research, State Street.

 
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Letter from Singapore (Second of Two Parts)

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Besides private credit, there’s growing volume in Singapore around private equity, real estate, and even venture capital. And investors there are researching specialty finance areas such as royalty financings, asset-backed, aviation, and legal settlement.


Fundraising for APAC private debt amounted to $14 billion in 2022, a rather modest figure compared to US and Europe, but a tick up from 2019’s $11 billion.


Under the private credit umbrella, direct lending has garnered interest, though skewed in favor of larger cap, more leveraged issuers where the banks do not play. Based on one of the PDI panels, there’s also keen Asia-Pacific appetite for more opportunistic and distressed paper.


There the yields are higher and the deal flow more idiosyncratic. It’s not clear if this translates to consistent income generation over the long-term...

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Chart of the Week

Asia Rising

Asia’s non-China share of global growth is increasingly from India and the rest of APAC.

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Source: IMF World Economic Outlook and IMF staff calculations

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Stat of the Week

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Loan Stats at a Glance 

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Contact: Marina Lukatsky / S&P Global Market Intelligence

PDI Picks

The return of distressed debt

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Special situations are emerging as a key fund focus in the 2023 mid-market, as managers respond to growing signs of distress driven by macroeconomic conditions...

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Leveraged Loan Insight & Analysis

US institutional volume wanes

in wake of bank failures

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US institutional loan volume has waned after the failures of Silicon Valley Bank, Signature Bank and Credit Suisse rattled financial markets last month. Prior to that, institutional volume was on the rise, peaking during the week...

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Contact: David Puchowski/ Refinitiv LPC

The Pulse of Private Equity

Q1: A mixed verdict

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2023 started with mixed results. According to PitchBook’s just-released Q1 2023 US PE Breakdown, deal flow slid 9% while deal value rose about 11%. Both figures are ahead of pre-Covid levels, but post-Covid trends...

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Contact: Alex Lykken / PitchBook

Covenant Trends 

Percentage of First Lien Loans

with Affected Lender Voting Protection

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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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Distressed debt funds find

opportunities in North America

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The amount of dry powder available for distressed debt in North America has returned to pre-pandemic levels. Dry powder in the strategy dropped to $67.2bn as of September 2022, down from $71.5bn in 2021...

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Contact: Megan Harris / Preqin

Debtwire Middle-Market

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Source: Cliffwater Direct Lending Index and BofA Merrill Lynch US High Yield Effective Yield

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Contact: Hema Oza / Debtwire 

Middle Market Deal Terms at a Glance

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Contact: Stefan Shaffer / SPP Capital Partners

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.