The coal company said its term loan lenders are without merit in their efforts to block a distressed debt exchange with bond investors.
Small-business lenders and experts are beginning to debate whether the weeklong shutdown will underscore the program's bipartisan support or give its critics more ammunition to argue that it is too vulnerable to politics.
Quarterly results are still coming in, but commercial lending has exceeded expectations at several large banks just as it has in so many quarters since the financial crisis.
The Securities & Exchange Commission published a no-action letter last week clarifying that CLOs originally issued before December 2014 can be refinanced and remain exempt from risk retention rules.
Despite the high yield market's concerns over the Iranian nuclear power deal, volatility in oil and gas prices, and contagion from Greece and China, Carl Pepper Whitbeck, head of U.S. fixed-income for AXA Investment Managers, says the year will end on a high note.
Besides the Greek bailout drama this month, the stock market plunge in China and the likelihood of interest-rate increases in the U.S. have escalated concerns among credit portfolio managers on widening spreads and increasing numbers of defaults.
CLO managers are receiving a small concession from regulators that will allow them to refinance most of their issues in two years without triggering risk-retention rules, sources say.
In 2011, the company's merger with International Coal Group had it poised to be the second largest metallurgical coal producer in the U.S. Four years later, market prices have Arch's debt trading at distressed levels.
U.S. leveraged loan syndication in the first half of 2015 is down 29.1% from the same period a year ago, according to Thomson Reuters, resulting in overall declines in deal volume and fees for all the top 25 banks ranked in the semi-annual bookrunner tables.
Several years have passed since ING's high-profile sale of its U.S. online-banking business, but it quietly remained an active player in commercial lending. Now the Dutch bank, which recently added a sixth U.S. business-lending office, hopes the energy boom will propel its growth here.
The debt load for corporate borrowers is exceeding earnings and leverage is nearing all-time high levels, according to Michael Contopoulos, high yield credit strategist at BAML.
With history as a guide as well as signs of slower issuance the remainder of the year the CLO market may be in store for a somewhat bearish summer in terms of spreads.
Goldman Sachs has initiated plans to enter the online consumer lending business, making unsecured personal loans of $15,000 to $20,000 to individuals and potentially small businesses.
Business development companies (BDCs) are making another push at lifting restrictions on the amount of borrowed money they can put to work.
While oil prices have steadied in recent weeks, it may be up to another year for oilfield services firm to reap any benefits, according to Standard & Poors. In a report published this week, the ratings agency said it would maintain its overall negative outlook on oilfield services despite a return to $60-per-barrel oil prices in recent weeks.
Head of US Fixed Income
Firm: AXA Investment Managers