Latest news
Latest news
Major sectors in leveraged loans are trading down, making shrewd credit selection vital
Deal is one of the tightest prints this year and is the second European CLO solely arranged by Mizuho
Debut manager is launching a CLO platform building on leveraged loan market experience
More articles
More articles
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TwentyFour Asset Management said this week that it favours a defensive position in European securitization, given tight spread levels. The firm sees value in CLOs, but cautions that manager behaviour could be a growing risk next year as the credit cycle matures. -
The final version of the government’s tax reform bill that the US congress will vote on this week is tough on highly levered US companies, said Fitch on Monday, but most analysts believe the changes won’t significantly dent appetite for corporate borrowing.
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LCM Capital Management and Carlyle have priced triple-A paper at new lows in recent days. The tightening trend in CLO debt appears relentless. Bank of America Merrill Lynch said on Friday that triple-A notes could drop to around 90bp next year.
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A report from Bank of America Merrill Lynch on Friday said that high yield bonds from US healthcare companies should be trading wider to the rest of the market, given the potential for secular industry changes on the back of regulatory and tax reform risks.
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US leveraged finance sources have blamed a rampant CLO market for allowing borrowers to run riot in the leveraged loan market with loose covenants and declining underwriting standards, trends that look likely to escalate if leveraged lending guidelines are rolled back, writes David Bell.
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London-based credit platform Hayfin Capital Management has signed an agreement to acquire US CLO manager Kingsland Capital Management, giving it exposure to US leveraged loans and high yield credit.
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CLO volumes look set to finish 2017 well above 2016 levels and should grow again in 2018, according to analysts. Strong demand, particularly at the mezzanine level, is likely to anchor spreads near their currently tight levels.
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Pharmaceutical company Valeant took advantage of strong conditions in the US high yield market on Monday as it issued a bigger than expected $1.5bn eight year senior note to refinance $1bn of debt due 2020.
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The announcement from CVS Health that it would acquire healthcare insurer Aetna is set to result in a flood of debt in the US leveraged finance market, with the firm looking to raise around $45bn of new paper to support the $77bn deal.
