Mon, Mar 8, 2021
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Other Voices: Resurging leveraged loan issuance points to a stronger year

Thursday, November 05, 2020

By: Jeremy Duffy, Eliza McDougall, Jake Mincemoyer, White & Case

After taking a deep dive in Q2, US leveraged loan issuance picked up in Q3, while European markets gained year on year.

Having navigated extreme market dislocation due to COVID-19 for the past six months, leveraged loan activity in the United States and Western and Southern Europe is giving cause for optimism.

Quarterly leveraged loan issuance in the US reached US$158 billion in Q3 2020, up 9% from US$145 billion in Q2.

Despite a sharp decline in Q2, overall issuance in the country is down less than half a percent year-on-year, from US$632.5 billion for the first nine months of 2019 to US$630 billion over the same period in 2020.

And while loan issuance in Western and Southern Europe was noticeably lower this quarter at US$45.1 billion-down 36% compared to the US$70.5 billion seen in Q2-year-on-year issuance is up. Over the first three-quarters of 2020, issuance reached US$186.3 billion, rising from US$170 billion over the first three-quarters of 2019.

Lenders look beyond immediate cash needs

Leveraged loans have been coping with increased competition from high yield bonds for deal flow since COVID-19 lockdowns began. Many investors pivoted toward high yield bonds, which are not linked to floating interest rates and offer the promise of better yields in the current low-int......................

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. SPAC and ESG fads are on collision course with billions at stake[more]

    From Bloomberg: Two of the hottest equity market trends are headed for a clash as some ESG investors are having second thoughts about blank-check firms that have flooded the market. Early signs show that money managers wedded to environmental, social and governance themes are reluctant to buy in

  2. SPACs: Casdin, Corvex are on a SPAC tear, Carvana becomes the darling of hedge funds, YieldStreet explores creating a SPAC of its own, SPAC wave stirs IPO competition[more]

    Casdin, Corvex are on a SPAC tear From Institutional Investor: Casdin Capital and Corvex Management are the latest serial blank-check sponsors.The two hedge fund firms filed plans for their third special purpose acquisition company, or SPAC, just two days after pricing their second one a

  3. New Launches: Vector Group launches new proptech fund[more]

    Vector Group announced the launch of New Valley Ventures, an investment vehicle seeking opportunities in next-generation technologies in the property technology (PropTech) space. New Valley Ventures will invest in promising PropTech startups committed to supporting rapid transformation of the real e

  4. SPACs: Perceptive Advisors lays out the $8bn hedge fund's SPAC strategy, SPAC boom fades as ETFs tracking blank-check firms crater amid risk-off sentiment, Are blank cheque companies surrogates for private equity?[more]

    Perceptive Advisors lays out the $8bn hedge fund's SPAC strategy From MSN: Compared to the average SPAC sponsor, Perceptive Advisors' track record has been phenomenal. Less than a third of SPACs that took a target company public between 2015 and the summer of 2020 generated positive retu

  5. Opalesque Exclusive: ESG factors reflect very serious changes on how dollars will be invested in the future[more]

    B. G., Opalesque Geneva: As reported yesterday, credit rating and research company