april 2014, us leveraged loan market analysis
DESCRIPTION
The big story of early 2014 was robust M&A-related volume, which ticked up to a post-credit crunch high of $62 billion in the first quarter. That, in turn, lifted total leveraged loan activity to $162 billion from a 15-month low of $127 billion during the final three months of 2013. Looking ahead, most players expect the market to remain relatively in balance in the coming months. Check out LCD's new, free web sites, LeveragedLoan.com and HighYieldBond.com http://www.leveragedloan.com http://www.highyieldbond.com/ * Job postings * Online Loan Market and High Yield Primer * News and analysis * Market Stats Video presentation: http://youtu.be/Ypapt_65UM0 Connect with LCD Facebook: http://www.lcdcomps.com/facebook Like LCD on Facebook for monthly analysis on LBO/Private equity stats, as well as Default/Restructuring analysis. LinkedIn: http://www.lcdcomps.com/linkedin There are over 10,000 market contacts in LCD's Leveraged Loan Group Twitter: http://www.twitter.com/lcdnews News, commentary, other leveraged finance info Web: http://www.lcdcomps.com Contact: [email protected]TRANSCRIPT
US Leveraged Finance Market UpdateApril, 2014
Steve Miller - Managing Director
Text
Leveraged Loan Volume
$0B
$25B
$50B
$75B
$100B
$125B
$150B
$175B
$200B
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14
Institutional Pro Rata
Total Volume M&A-Driven Loan Volume
Source: S&P Capital IQ/LCD
$0B
$25B
$50B
$75B
$100B
$125B
$150B
$175B
$200B
1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13 1Q14
Institutional Pro Rata
96
97
98
99
12/12 1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/31 11/13 1/14 2/14 3/14
Average Bid of S&P/LSTA Loan Index
Source: LCD - Leveraged Commentary & Data
Visible Inflows
Source: LCD - Leveraged Commentary & Data, Lipper
$0B
$5B
$10B
$15B
$20B
9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13 11/13 12/13 1/14 2/14 3/14
CLO IssuanceMutual Funds Inflows
S&P/LSTA Index Loans Outstanding
Source: LCD - Leveraged Commentary & Data
$500B
$545B
$590B
$635B
$680B
$725B
9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13 11/13 12/13 1/14 2/14 3/14
3%
4%
5%
5%
6%
7%
9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13 11/13 12/13 1/14 2/14 3/14
Average New-Issue Clearing Yield of First Lien Loans
Source: LCD - Leveraged Commentary & Data
All-BBAll-B
0%
2%
5%
7%
10%
12%
1/07 11/07 9/08 7/09 5/10 3/11 1/12 11/12 9/13
Loan Default Rate
Source: LCD - Leveraged Commentary & Data
3/14
M&A Institutional Loan Forward Calendar
Source: LCD - Leveraged Commentary & Data
$0B
$7B
$14B
$21B
$28B
$35B
3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 5/13 7/13 9/13 11/13 1/14 3/14
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