SHARE:  
Archives| PDF| Research |Week of June 21, 2021
  • Correlation Nation: Private Credit…and Everything Else
  • Distressed for Success
  • Private Credit – Sector by Sector
  • The M&A Big Bang
“The markets will be more spooked by 2022 turning to a rate hike,
because that will mean they have to taper as well.”
- Derek Halpenny, head of research, global markets, EMEA, MUFG Bank.
Lead Left Vodcast

🔔Subscribe to our YouTube channel: click here
The State of Private Credit in Europe
(Second of a Series)
Our fondness for colorful metaphors led us, in our 2016 series, to compare European direct lending to Burger King’s new hot dog venture. The burger giant’s thesis was to apply “sixty years of flaming-grilling expertise,“ but also recognized they’d have to “chop the onions a little differently.”

Apparently, hamburger prowess didn’t translate to frankfurters. The experiment lasted six months.

Similarly, there are fundamental differences between US and European private credit markets. Banks are more “efficient” in Europe and represent a greater share of leveraged loans. And despite the toe-hold direct lenders have established there over the past decade, barriers remain.

In a recent column in Private Debt Investor, a banker referred to a survey showing 22% of private equity sponsors favored one-stop solutions, preferring bank loans instead...
Readers' Say
This Week’s Question
Which technology will impact people’s life most in the near future?
(*All responses are confidential.)
Big Data
Smart home tech
Virtual reality
Artificial Intelligence
Machine learning
Last Week's Results
Which nations will recover fastest from COVID-19?
Chart of the Week
Rebound Zone
As in the US, European manufacturing and services has jumped higher than pre-Covid levels.
Source: Capital Economics, Refinitiv, IHS Markit
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
Germany’s direct lenders make their mark
The country’s once-dominant banks have seen their share of the lending market steadily eroded by alternative finance sources...
Leveraged Loan Insight & Analysis
Business services is top sector for US syndicated mid-market loan volume so far this year
Through deals of June 18, year-to-date syndicated middle market volume totals US$60.2bn, 30% higher than the US$46.3bn recorded during the same period last year...
The Pulse of Private Equity
A solid start in the middle market
PitchBook’s latest US Middle Market Report shows a strong start to 2021, with the second highest quarterly totals in terms of value...
Contact: Alex Lykken / PitchBook
High-Yield Bond Statistics
Weekly fund flows source: Lipper
Covenant Trends 
Percentage of Loans with Uncapped Synergies & 
Cost Savings EBITDA Addbacks
DL Deals: News & Analysis
Direct Lending Industries
Year to Date
Private Debt Intelligence
Cybersecurity and software drive mega deal trend in private debt
2021 has seen 22 private debt megadeals ($1bn+ deals) so far, three of which were in the software sector and two of which were in IT security/cybersecurity...
Debtwire Middle-Market
Contact: Hema Oza/Debtwire 
Reorg Credit Intelligence
Catalina, Bi-Lo, Extraction Lead Gainers;
Cenveo, Appvion, Garrett Motion Lead Decliners;
Hertz Expects to Emerge by End of June
The following chart reports the week’s top gainers and losers in percentage terms of average quotes, as reported by Solve Advisors. Recent news on certain of the gainers and decliners is shown in this chart as well. The price movements shown are based on an average of aggregated quotes from broker dealers, as compiled by Solve Advisors.
(To read our full post reorganization coverage of post-reorg equities for June 2021 click here)
Contact: Matt Danese/Reorg 
June 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.