June 2014: US Leveraged Loan Market Analysis
Loan prices rebounded during the month after April’s mini correction, a result of strong CLO issuance and slowing volume. Looking to the summer, most players think the market will remain largely CLO-driven, with retail a slight drag on demand. Loan supply, meanwhile, is roundly expected to be lackluster. Though the M&A loan calendar remains within the recent range, some transactions are not expected to launch until the fall, and there are few blockbuster executions in the mix.
August 2014: European Leveraged Loan Market Analysis
July was a busy month for the European leveraged loan market. Total volume of new loan issuance hit €14.6 billion, making it the biggest month since July 2007. July was a breakout month for covenant-lite issuance. By early August, however, there were signs of weakness in secondary markets, particularly on the high-yield side. Arrangers say there is a busy pipeline in the works for September. If the market is to return in the autumn at the same pace it set in July, it will need to be supported by positive investor sentiment and strong demand for assets.
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