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Even leveraged deals still being underwritten, though banks are selective
Liquidity event at American manager comes at fraught time for industry
Major sectors in leveraged loans are trading down, making shrewd credit selection vital
Deal could include $950m of bonds
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The European markets for leveraged debt were on holiday this week, with no primary deals, moderate trading volumes and a slow but persistent widening. Some investors believe this week’s recess will be replaced by tougher markets in September.
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The UK and Italy are potential flashpoints in a European credit market where political fragmentation is the biggest internal risk, Standard & Poor’s warned on Tuesday. Continued low interest rates will be crucial to companies staying in good financial health.
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Chris Munro, co-head of leveraged finance for Europe, Middle East and Africa at Bank of America Merrill Lynch, is leaving London to take up a new role as the bank’s sole global head of leveraged finance in New York.
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India's Shriram Transport Finance Corp is tapping the loan market for a $350m five year borrowing, its first dollar-denominated fundraising.
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Chailease International Finance Corp is turning to the loans market for an up to $250m borrowing, just a few months after sealing renminbi-denominated and Japanese yen facilities.
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Taiwan’s Paiho Shih Holdings has returned to the offshore loan market, seeking a $120m refinancing loan through KGI Bank.