Thu, Dec 13, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Alt-credit managers cautiously optimistic about 2019

Thursday, December 06, 2018

Bailey McCann, Opalesque New York:

Alternative credit managers are still finding new opportunities heading into 2019, according to the delegates at the recent Opalesque New York Roundtable. While 2019 is likely to show signs of a slowing market, there is still room to be cautiously optimistic managers say.

"Given where we are in the credit cycle, it is prudent to invest more slowly and not ramp up assets over the next 12-18 months," said Hank D'Alessandro, Managing Director, Head of Morgan Stanley Credit Partners. He adds that managers that focus on niche markets that are less likely to be commoditized are more likely to be able to ride out the late cycle.

"There are two areas where we still see value today. Lower middle market senior loans, so small companies, less than $15 million of EBITDA, you can generally get very good covenants, solid amortization and excess cash flow sweeps, reasonable leverage and good pricing," D'Alessandro says. "And in the broader private debt market non sponsored companies, there seems to be much less competition, and so ability to get well structured, well-priced deals even today still exists. However, sourcing non - sponsored deals costs more and takes more work versus sponsored deals where the process is a efficient, albeit in an auction environment."

Jonathan Berger, CEO & CIO, at Birch Grove Capital noted that now may also be a good time to look at ways of investing that participate in op......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Brexit: Hedge funds make big bets against post-Brexit UK economy, Hedge funds rent a lifeline to stay afloat in EU post-Brexit, Treasury green-lights sale of new EU funds into UK[more]

    Hedge funds make big bets against post-Brexit UK economy From The Guardian: A pair of hedge funds owned by prominent Brexit supporters have made significant bets against companies exposed to the British consumer including big high street names. Odey Asset Management, part-owned by Cr

  2. Trends: Licking their wounds, fund managers prep for rally in '19, Concerns rising over leveraged loan market[more]

    Licking their wounds, fund managers prep for rally in '19 From Reuters: With bond and equity markets from the United States to emerging markets all on pace to lose money this year, investors have not seen this much red on their screens since 1972, the last time no asset class returned at

  3. New Launches: Swiss boutique launches EM impact bond fund, Jungle Ventures to raise $200m third venture capital fund, CPR AM licences five funds with new climate rating, Sailing Capital seeks $1.5bn for second fund, Liquid multi-strategy alts focus of new Schroder fund, Vivo Capital rakes in $864m, Swiss group launches sustainable European small-cap fund[more]

    Swiss boutique launches EM impact bond fund From City Wire: Swiss impact investmenting boutique BlueOrchard has launched a Ucits-complaint impact bond fund. The Luxembourg-domiciled Emerging Markets SDG Impact Bond fund will allocate to companies in emerging and frontier markets and aims t

  4. Institutional Investors: PennPSERS earmarks $450m for 3 funds, adds new funds to DC lineup, Qatar Investment Authority has accelerated investments in technology, Elon Musk says he would no longer accept Saudi investment, San Francisco City & County Employees slates $192m for alternatives[more]

    PennPSERS earmarks $450m for 3 funds, adds new funds to DC lineup From PIonline.com: Pennsylvania Public School Employees' Retirement System, Harrisburg, allocated $450 million to three investment funds and added 11 new funds to its defined contribution lineup, confirmed Evelyn Williams,

  5. Emerging technologies, defensive investment strategy on top asset owners' minds: State Street[more]

    Laxman Pai, Opalesque Asia: Nearly half (48%) of the institutional investors surveyed identified emerging technology as a top enabler of growth over the next five years, revealed a study. According to a new research from State Street, the participants identified blockchain, artificial intell