In a Q&A with Leveraged Finance News, former Blackrock multisector fixed income head Brian Weinstein discusses his move into alternative investments at Blue Elephant Capital Management, and the huge growth opportunities he sees in bringing institutional investors into peer-to-peer lending.
Capital Automotive LLC plans to raise $400 million in debt to help finance its proposed acquisition by Brookfield Property Partners, according to ratings agency reports.
Business development corporations are testing the waters with "at the market" programs to sell relatively small numbers of shares to fund loans to middle-market businesses. But the ease and efficiency of raising capital through ATMs - vs. traditional offerings on Wall Street - could lead to riskier lending decisions by BDCs, warns Fitch Ratings.
Struggling RadioShack is reportedly in talks with a hedge fund on a financial rescue package that would include refinancing existing debt. The plan could help jump-start renewed negotiations with creditors and allow it avoid bankruptcy.
Yields on loans from single-B issuers have reached a 12-month high, according to Thomson Reuters LPC, but there are signs the momentum may swing back to corporate issuers as the fourth quarter nears.
In a reversal from first-quarter trends, Babson Capital reports that spreads tightened slightly in both the U.S. and Europe for AAA paper in CLO 2.0 issues while lower-rated mezzanine tranches saw widening spreads of 20 bps.
TPG Institutional Credit Partners and PineBridge Investments are in the market with two collateralized loan obligations totaling nearly $1 billion.
The Federal Reserves two-year deadline extension for banks to conform their collateralized loan obligation holdings to the Volcker Rule already has a troubling limitation, an industry trade group spokesman said Wednesday at a CLO conference in New York.
A Federal Reserve limitation on the two-year extension it granted banks to bring CLO holdings into Volcker Rule compliance will end up harming divestiture efforts, a trade group spokesman said.
Leveraged loan issuance of $276 billion in the first three months of 2014 was down from this period a year ago. But it still ranks as the third-highest volume on record since 1987.