Archives| PDF | Research | Week of Apr 13, 2020
“There’s no such thing as a bear market without a bear market rally.”
– Gregory Perdon, co-chief investment strategist, Arbuthnot Latham.
Lead Left Vodcast
The Great Stay-In (Sixth of a Series)
This week we wrap up our conversation with Brian Nick, Nuveen’s chief investment strategist:

The Lead Left: Brian, how do you compare this cycle with the last one?

Brian Nick: The last cycle ended because of an excess of leverage and risk-taking by individual households and within the financial system as a whole. The housing bust was a match that lit a huge pile of kindling, and it greatly hampered the economy’s recovery. This time, we’re entering a recession with an 8% average household savings rate, a healthy banking system and the Fed quickly launching its emergency playbook...

➢ Next week: We continue our Great Stay-In series with an industry analysis.
Readers' Say
This Week’s Question
After COVID-19 the recovery will be ____ .
(*All responses are confidential.)
V-shaped
U-shaped
W-shaped
L-shaped
Swoosh shaped
Last Week's Results
What will be the biggest advancement due to Covid-19?
Chart of the Week
Peak to Trough
Last month’s early price plunge was three times worse than the Great Depression.
Source: Goldman Sachs, Investment Strategy Group, Bloomberg
Lead with Your Left
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Stat of the Week
 Loan Stats at a Glance 
PDI Picks
The hidden attraction of distress
They may not be raking in fresh capital right now, but distressed debt managers have plenty of firepower to take advantage of current conditions...
Leveraged Loan Insight & Analysis
1Q20 MM non-sponsored syndicated loan issuance mirrored 1Q19’s dire levels
At US$16bn, 1Q20 non-sponsored issuance was down 25% from 4Q19 and was on par with 1Q19, which was the slowest 1Q since 1Q10. After a slow start in January, issuance picked up in February and was flat in March...
Contact:   Diana Diquez / Refinitiv LPC
The Pulse of Private Equity
Not a good time to raise your first fund
As expected, Q1 fundraising totals were soft, according to PitchBook’s PE Breakdown Report. Just 46 funds were closed totaling $45 billion, and much of that was cinched up in January or February...
Contact:   Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source:  Lipper
Covenant Trends 
Percentage of Loans
with F&C Tranche / Pro Forma EBITDA >0.9x
DL Deals: News & Analysis
Price points emerge in 10% to 11% range 
for jumbo direct lending loans
Two jumbo direct lending deals surfaced this week— Alnylam Pharmaceuticals and Airbnb —as the first comps to guide new issue underwriting since the Covid-19 pandemic shut credit markets a month ago...
Private Debt Intelligence
Private Debt Fundraising Falls in Q1 2020
The past quarter has been a challenging one, with the emergence of the COVID-19 pandemic impacting in all markets across the globe...
Contact: Maria Zapata / Preqin 
Debtwire Middle-Market
Secondary loan market continues to grind higher
Source: Debtwire Par, Markit
The secondary loan market continues to grind higher, adding over 2 points in the last week to reach an average bid of 85.26 (as of April 14), and is now up 9 points from its March 23 low...
Contact:  Colm (CJ) Doherty / Debtwire  
Apr Update: Middle Market Deal Terms at a Glance
Select Deals in the Market
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