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.
The coal producer is delaying an interest payment for the second time in two months.
More banks are looking at factoring, a form of asset-backed lending popular in the retail industry. Problem is, a lot of non-banks are looking, too.
Bank of America scored a legal victory this week for all holders of second liens when the Supreme Court ruled that bankruptcy courts cannot void a second mortgage because it exceeds the value of the home.
The high yield bond market is less interest rate sensitive compared to other fixed-income and likely to withstand an increase from the Fed, according to John Addeo, a portfolio manager and managing director at Manulife Asset Management.
Charter Communications' management is confident the $25 billion in secured debt issued to fund its takeover of Time Warner Cable will earn investment grade ratings; while that may be a stretch, the loans and/or secured bonds will surely be in high demand.
Tightening spreads combined with above-par secondary trading prices on a majority of spec-grade loans have spurred a rebound in recently dormant repricing activity. Year-to-date, more than 35 issuers have returned to lenders seeking new terms on more than $40 billion in loans -- including some obtained as recently as February.
Just six months after pulling a deal amid broader contagion in Brazil, the company managed to upsize a high yield bond offering to $900 million from $600 million originally.
The parent company of The Weather Channel, saddled with long-term high debt levels and declining revenue, wants to extend loan terms and pay down some of its high debt burden. Relief may come at a steep cost, with the company reportedly agreeing to a 150 bps rate increase in proposed terms
US CLO managers are pretty evenly split on how to comply with an impending requirement to keep skin in the game of their deals.
Like the middle market lender's previous deal, Monroe BSL CLO 2015-1 complies with European risk retention requirements.
Firm: Small Business Investor Alliance
In the news: Round Two: BDCs Make a New Pitch for More Leverage