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PDF | Research | Week of October 23, 2023

Quote of the Week

“When I was playing tennis, I stood in the middle of the court…I think that’s a correct metaphor for [rate] policy right now.” – Mary Daly, president and chief executive officer, Federal Reserve Bank of San Francisco.

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Letter from Stockholm

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Letter from Copenhagen

After our stop in Stockholm last month to visit investor clients with our Nuveen and Arcmont colleagues (and after our scheduled meetings in Finland were postponed by a baggage handlers’ strike at Helsinki-Vantaa airport), we gathered at Copenhagen’s Hotel d’Angleterre for an event showcasing alternative strategies. 


The Nordics share several similarities – the “Nordic model” – including high standards of living, free-market economies, liberal welfare states, and a relatively narrow gap between low and high earners. We also noted (after our Finnish experience) a strong union trend. 


One of our senior strategists further commented on a common belief system around environment, society, and governance. “What stood out in my mind after our trip,” he told us, “was the degree to which they talk the talk, but also walk the walk, on ESG. Both in how they invest, and how they live.” A lot of bike-friendly commuting lanes, as one prime example...

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Chart of the Week

Novo Nordisk Effect

Blockbuster drugs Ozempic and Wegovy are driving Denmark’s manufacturing production.

Source: Apricitas Economics

(Past performance is no guarantee of future results.)

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Stat of the Week

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Loan Stats at a Glance 

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Contact: Marina Lukatsky / Pitchbook LCD

PDI Picks

What's Next for Distress?

PDI’s Germany Forum examined the upcoming opportunity set for distressed and special situations as a refinancing wave looms.



“This is the best [distress] opportunity we’ve seen in a decade,” said a panelist at the PDI Germany Forum last week, referring to what he described as around...

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Leveraged Loan Insight & Analysis

US Market Unitranche Spreads Decreased in 3Q23

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Finding quality opportunities to put money to work has been one of the main challenges faced by middle market lenders this year. However, it...

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Contact: David Puchowski / Refinitiv LPC

The Pulse of Private Equity

A Big Drop in Mega-Buyouts

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$1B+ deals are set for a big decline this year, according to PitchBook’s Q3 US PE Breakdown. Through Q3, about $156 billion has been invested via billion-dollar...

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Contact: Alex Lykken / PitchBook

DL Deals: News & Analysis

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Year-to-Date Default Volume, Count

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Contact: Eric Rosenthal / KBRA DLD

Middle Market & Private Credit

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U.S. Middle Market CLOs’ ‘CCC’ Exposure Rising in Third Quarter

Negative rating migration has increased the average exposure to assets rated ‘CCC+’ or below to 19.4%, up 4.3% compared to 2Q23...

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Covenant Trends 

Percentage of Loans with F&C Tranche Growers

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Contact: Steven Miller / Covenant Review

High-Yield Bond Statistics

Launched Volume

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New-issue Yields

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Weekly Fund Flows

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Weekly fund flows source: Lipper

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Private Debt Intelligence

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Private Debt Dry Powder at all Time High 

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The post-pandemic monetary environment has spurred the growth of the global private debt industry. Assets under...

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Contact: Valerie Kor / Preqin

Debtwire Middle-Market

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Repricings tick upward in opportune window


An upturn in repricing transactions has been seen in the leveraged loan market over the past two months, as tightening margins have afforded issuers the ability to refresh existing deals at lower interest rates...

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Contact: Ben Watson / Debtwire 

October Update: Middle Market Deal Terms at a Glance

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Contact: Stefan Shaffer / SPP Capital Partners

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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.