Lynn's Feed
Jul 9, 2015

U.S. loan funds poised to keep outperforming corporate bond funds

NEW YORK (Reuters) – U.S. bank loan mutual funds outperformed corporate bond funds in the second quarter, and are expected to do so for the remainder of 2015, as investors are turning to shorter-term assets with global economic turmoil unfolding.

Floating-rate leveraged loans typically draw retail buyers when interest rates rise, and also have the advantage of ongoing demand that is surpassing supply, analysts and fund managers say.

Jul 9, 2015

TRLPC: US loan funds poised to keep outperforming corporate bond funds

NEW YORK, July 9 (Reuters) – U.S. bank loan mutual funds
outperformed corporate bond funds in the second quarter, and are
expected to do so for the remainder of 2015, as investors are
turning to shorter-term assets with global economic turmoil
unfolding.

Floating-rate leveraged loans typically draw retail buyers
when interest rates rise, and also have the advantage of ongoing
demand that is surpassing supply, analysts and fund managers
say.

Jul 1, 2015

U.S. loan volume gains momentum, trails year-ago pace

NEW YORK (Reuters) – U.S. syndicated loan issuance bounced in the second quarter from the two-and-a-half-year low set the prior quarter, driven by a renewed push by companies to refinance debt before borrowing costs increase.

Overall volume still fell short of last year’s second quarter, however, constrained by regulatory parameters on high-risk lending and by corporations favoring cash and equity over debt to fund takeovers.

Jun 30, 2015

OCC says banks make progress on following leveraged loan guidance

NEW YORK, June 30 (Reuters) – The Office of the Comptroller
of the Currency (OCC) said banks are making progress
implementing regulatory guidelines after leveraged loan
structures remained weak in 2014, driven by record investor
demand for floating-rate debt and a smaller supply of new
credits.

In its semi-annual risk perspective released Tuesday, the
OCC said that while covenant-lite issuance fell, the percentage
of loans arranged without full lender protections increased to
74 percent in 2014, compared with 60 percent the year before.

Jun 23, 2015

Wall Street faces toughest regulatory challenge yet on new loan review

NEW YORK (Reuters) – Big investment banks are facing their toughest test yet in the current 2015 Shared National Credit (SNC) review, months after regulators warned the banks that the quality of U.S. leveraged loans that they arranged was not as good as the banks claimed, sources said.

Regulators met with banks earlier this year after monthly monitoring started in 2014 revealed that several deals that banks claimed were in “good standing” were riskier than recorded, four people with knowledge of the discussions said.

Jun 23, 2015

TRLPC: Wall Street faces toughest regulatory challenge yet on new loan review

NEW YORK, June 23 (Reuters) – Big investment banks are
facing their toughest test yet in the current 2015 Shared
National Credit (SNC) review, months after regulators warned the
banks that the quality of U.S. leveraged loans that they
arranged was not as good as the banks claimed, sources said.

Regulators met with banks earlier this year after monthly
monitoring started in 2014 revealed that several deals that
banks claimed were in “good standing” were riskier than
recorded, four people with knowledge of the discussions said.

Jun 11, 2015

TRLPC: Alternative lenders gobble up second-lien loans

NEW YORK, June 11 (Reuters) – More U.S. companies including
Compusearch Software Systems Inc are choosing to place
second-lien loans with single alternative lenders rather than
syndicating broadly as lending in the sector shrinks, lenders
and attorneys said.

Pre-placing these loans, like Compusearch Software did with
a $51 million second-lien loan with private equity firm American
Capital Ltd, boosts confidence that a deal will get
done and makes negotiating terms easier, the sources said.

Jun 4, 2015

TRLPC: Record M&A fuels investment grade loan issuance

NEW YORK, June 4 (Reuters) – Huge takeovers by companies
including cable operator Charter Communications Inc and
chipmaker Avago Technologies promise to propel merger
and acquisition loan volume from strong to certifiably robust as
deals were announced at a record-breaking pace in May.

Leveraged deals are taking a backseat to investment grade
deals, however, as corporations with strong balance sheets and
huge amounts of cash on their books are beating out sponsors
already burdened by the constraint of leveraged lending guidance
that has limited leverage to around 6.0 times on most deals.

May 28, 2015

TRLPC: Customers, investors drive transport and logistics M&A spree

NEW YORK, May 28 (Reuters) – Merger and acquisition lending
in the freight transportation and logistics sector is
accelerating amid a consolidation boom as firms compete for
access to larger networks to meet demand from customers and
investors.

The scale of the acquisitions and the loans backing them are
increasing as a strong dollar helps U.S. companies to snap up
European peers and investor demand for floating-rate loans
remains strong.

Apr 17, 2015

GE Capital sale shakes up U.S. middle market lending

NEW YORK, April 17 (Reuters) – General Electric Co’s
plans to sell most of its finance unit, GE Capital, will create
opportunities for new lenders in U.S. middle market leveraged
loans as a dominant player in commercial lending and sponsor
finance leaves the field.

GE announced plans on April 10 to shed approximately $200
billion in GE Capital assets, including its $74 billion U.S.
commercial lending and leasing unit and its $16 billion sponsor
finance business, which finances private equity buyouts.