Archives| PDF| Research |Week of Apr 12, 2021
“What we’re seeing now is really an economy that seems to be at an inflection point.”
- Jerome Powell, chairman, Federal Reserve.
Lead Left Vodcast

🔔Subscribe to our YouTube channel: click here
CLOs Revisited – Ratings, Risks, and Returns
(Fourth of a Series)
Competition in leveraged loans, keen as it is, pales in comparison to the 2021 Mrs. Sri Lanka pageant. Reigning Mrs. World champion, Caroline Jurie yanked the tiara off newly-crowned winner Pushpika DeSilva, charging Mrs. DeSilva was not married. Mrs. DeSilva fled the stage in tears.

Order was eventually restored. Mrs. DeSilva reclaimed her crown, and Mrs. Jurie resigned hers. We look forward to the 2021 Mrs. World pageant to be held later this year…in Sri Lanka.

Meanwhile in the less dramatic world of middle market CLOs, managers made it successfully through the pandemic, and are positioned for the rebound.

For some perspective, MM CLOs represent about 14% of the total CLO market, both in terms of issuance and outstandings...
  • SPACs: Colorful blank checks
  • SPACs: Weighing the Benefits
  • SPACs – The Final Word
Readers' Say
This Week’s Question
PE investors: What will be the main challenge in 2021?
(*All responses are confidential.)
Lack of quality assets
High purchase multiples
Fundraising
Covid
Compressed returns
Last Week's Results
By year end I expect to be working ____ days per week in the office.
Chart of the Week
Midcaps on Upswing
While 2020 middle market CLO activity slid from the previous year, 1Q 2021 issuance has revived.
Source: Fitch Ratings, public information; Bloomberg
Lead with Your Left
Click here to view Newsletter sample
30-DAY FREE MEMBERSHIP

Join the leading voice of the middle market. 

- One-stop source for deals and data 
- Market trend commentary and analysis
- Exclusive interviews with thought leaders
Stat of the Week
 Loan Stats at a Glance 
PDI Picks
The European deal market’s fast rebound
It was a challenging year for new transactions in the region which nonetheless went out with a bang...
Leveraged Loan Insight & Analysis
Spring Session | Tuesday April 27 and Wednesday 28, 2021
Hundreds of bankers, investors and borrowers from around the world will join us for discussions on the most important issues facing the syndicated loan market. This event is FREE to attend!
CLO AUM ends 1Q21 at US$765bn, up 4.7% QoQ
Driven by robust activity in the US CLO market, CLO AUM ended 1Q21 at US$765bn, up 4.7% quarter over quarter. March 2021 represented the sixth consecutive month of increasing AUM...

🔔Tune in to LPC’s Virtual Spring Loans Conference, April 27-28. View Agenda & Register (here) & Trailer!
The Pulse of Private Equity
A strong start to the year
Fourth quarter deal momentum spilled into 2021, resulting in record Q1 numbers for the US PE market. PitchBook’s latest US PE Breakdown Report calculates a $203 billion quarter on 1,763 deals across the country...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Average Minimum Day-One
Capped Basket Capacity, YoY
Private Debt Intelligence
Direct Lending Targeted in
Private Debt Fundraising
Although Q1 2021 saw a drop in both the number of private debt funds closed and aggregate capital raised, the outlook for the sector remains positive...
Debtwire Middle-Market
Contact: Hema Oza/Debtwire 
Apr Update: Middle Market Deal Terms at a Glance
Select Deals in the Market
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.