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A slow destruction of misallocated investment is more likely than a sudden stop
LBO financing includes $5.75bn term loan to be priced early next week
Investors eye 2028, 2031, 2032 as big years for loan maturities
Even leveraged deals still being underwritten, though banks are selective
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Chinese alternative investment firm Citic Capital Holdings has approached the loan market for a new HK$2.5bn ($318m) borrowing.
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Investment house Hermes launched a new liquid credit fund this week, catering to clients seeking shelter from market volatility while foraging among new markets about which they know less.
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Europe’s corporate bond market is dry. New issuance this week is out of the question, and liquidity is patchy. Spreads are being marked wider as concerns rise about Europe’s political and economic health. But investors have not lost their nerve.
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High yield and leveraged loan issuance was almost at a standstill this week amid worries about the eurozone, but some fund managers were calling for borrowers to be braver.
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Chinese footwear brand Belle International is returning to the offshore loan market to amend and extend a borrowing signed last year, as well as to raise funds for dividend recapitalisation.
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High yield bonds have sold off as financial markets have been rocked by the collapse of Italy’s coalition government-in-waiting — but a deeper concern is that the real cause of the weakness is anxiety about Europe’s economy itself.