Leveraged Loan Update         March - 2012Steve Miller - Managing Director
S&P/LSTA Index Returns3%1%-1%-3%-5%      3/11   4/11   5/11    6/11     7/11     8/11   9/11   10/11   11/11 12/11   1/12 ...
Volume of New Institutional Loans ($bil)5033170     2/11   3/11   4/11   5/11   6/11   7/11   8/11   9/11   10/11   11/11 ...
LCD Flow Name Composite (15 large, liquid names) 100  97  95  92  90  87  2/11    3/11     4/11     5/11     6/11     7/11...
Average New-Issue Loan Clearing Yield8%8%7%6%5%  2/11           4/11           6/11        8/11   10/11   12/11   2/12Sour...
Amend-to-Extend, High-Yield Bond Take-out Volume ($bil)25                                             High Yield Takeouts ...
Opportunistic Deal Flow ($bil)60                                                 Repricings                               ...
Leveraged Loan Default Rate (%)1.51.10.80.4 0      2/11          4/11             6/11     8/11   10/11   12/11   2/22  So...
Upcoming Trends• M&A deal-making light, at least in 1H• Opportunity knocks? Issuers focused ondividends, and maybe even re...
Follow LCDwww.lcdcomps.comnews, analysis, research, archiveswww.linkedin.com/groups/LCD-Leveraged-Loan-Group-2092432LCD Le...
Copyright 2012 Standard & Poors, a division of The McGraw-Hill Companies, Inc.No content (including ratings, credit-relate...
Upcoming SlideShare
Loading in …5
×

March 2012, US Leveraged Loan Market Analysis

587 views

Published on

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
587
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
20
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

March 2012, US Leveraged Loan Market Analysis

  1. 1. Leveraged Loan Update March - 2012Steve Miller - Managing Director
  2. 2. S&P/LSTA Index Returns3%1%-1%-3%-5% 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 Source: LCD - Leveraged Commentary & Data
  3. 3. Volume of New Institutional Loans ($bil)5033170 2/11 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12Source: LCD - Leveraged Commentary & Data
  4. 4. LCD Flow Name Composite (15 large, liquid names) 100 97 95 92 90 87 2/11 3/11 4/11 5/11 6/11 7/11 9/11 10/11 11/11 1/12 2/12 Source: LCD - Leveraged Commentary & Data
  5. 5. Average New-Issue Loan Clearing Yield8%8%7%6%5% 2/11 4/11 6/11 8/11 10/11 12/11 2/12Source: LCD - Leveraged Commentary & Data
  6. 6. Amend-to-Extend, High-Yield Bond Take-out Volume ($bil)25 High Yield Takeouts A2E19 Text 13 6 0 3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/1 1/12 2/12 Source: LCD - Leveraged Commentary & Data
  7. 7. Opportunistic Deal Flow ($bil)60 Repricings Dividends45 Text3015 0 1Q11 2Q11 3Q11 4Q11 YTD 2011 Source: LCD - Leveraged Commentary & Data
  8. 8. Leveraged Loan Default Rate (%)1.51.10.80.4 0 2/11 4/11 6/11 8/11 10/11 12/11 2/22 Source: LCD - Leveraged Commentary & Data
  9. 9. Upcoming Trends• M&A deal-making light, at least in 1H• Opportunity knocks? Issuers focused ondividends, and maybe even repricings• CLO activity heating up as AAA printsnarrow further
  10. 10. Follow LCDwww.lcdcomps.comnews, analysis, research, archiveswww.linkedin.com/groups/LCD-Leveraged-Loan-Group-2092432LCD Leveraged Loan Group ...7,000+ contactswww.twitter.com/lcdnewsHeadlines, market chatterwww.facebook.com/lcdcomps/Daily Playbook, headlines, video analysis
  11. 11. Copyright 2012 Standard & Poors, a division of The McGraw-Hill Companies, Inc.No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any part thereof (Content) may bemodified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permissionof S&P. The Content shall not be used for any unlawful or unauthorized purposes. S&P, its affiliates, and any third party providers, as well as their directors, officers,shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are notresponsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any datainput by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUTNOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWAREERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANYSOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory,punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) inconnection with any use of the Content even if advised of the possibility of such damages.Credit-related analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact orrecommendations to purchase, hold, or sell any securities or to make any investment decisions. S&P assumes no obligation to update the Content followingpublication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management,employees, advisors and/or clients when making investment and other business decisions. S&P’s opinions and analyses do not address the suitability of any security.S&P does not act as a fiduciary or an investment advisor. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an auditand undertakes no duty of due diligence or independent verification of any information it receives.S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As aresult, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintainthe confidentiality of certain non-public information received in connection with each analytical process.S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. S&P reservesthe right to disseminate its opinions and analyses. S&Ps public ratings and analyses are made available on its Web sites, www.standardandpoors.com (free of charge),and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and thirdparty redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.

×