Tag:
Leveraged Loans
Latest Headlines
Latest Headlines
OCC worries about leveraged loan revival
Are banks once again taking a much too cavalier attitude toward leveraged loans? The Office of the Comptroller of the Currency (OCC) thinks so.
This is somewhat surprising coming from the OCC, which, under the direction of previous head John Dugan, was often seen as a defender of the industry.
Leveraged loans make a comeback
Leveraged loans had fallen to near pariah status as the financial crisis hit its peak, but like other distressed securities, they have since made a comeback. So much so that you have to wonder if the market has hit another top.
We've certainly seen some jitters related to global economic
The return of covenant-lite loans
Back when the private equity bubble was deflating, a lot of attention was focused on covenant-lite loans. In some quarters, such loans were held up as an example of either how the private equity firms had hoodwinked lenders to the detriment of portfolio companies or how banks had become way too pr
Leveraged loans on fire
Leveraged loans have outperformed high-yield corporate bonds so far this year, after lagging the last four years, Bloomberg reports. Leveraged loans have attracted $1.4 billion this year, while the high-yield bond market has seen outflows of more than $400 million. Article
(Bond Marke
Leveraged loans soaring
The market for U.S. leveraged loans has been rallying. The Financial Times notes that the average price bid rose above 90 percent of face value for the first time since June 24, 2008. This is a strong sign that the credit crunch has eased. Let's hope it lasts. Article
(Credit Crunch,
A cruel rally in junk bonds
Bloomberg notes that a strong rally in high-yield bonds has cursed many ailing companies that were hoping to buy back debt or exchange them for other bonds. To cut their debt burdens, lots of companies were taking advantage of severely discounted prices. Now that opportunity seems to be slippi
Morgan Stanley hurt by rise of its own bond prices
So much for the string of upside earnings surprises. Morgan Stanley reported a first-quarter loss of 57 cents a share ($177 million) vs. an expected loss of 8 cents. For the month of December--a month that fell, much like earnings at Goldman Sachs--before the official Jan.-March quarter, it lost $
Goldman Sachs loans to pay employee margin calls
Here's one perk that Goldman Sachs isn't taking away: Cash to help up to 1,000 employees meet margin calls on funds run by the bank, according to the New York Times . Many of these funds have been hard hit. Employees in the funds are obligated to meet margin calls, and funds have such calls sch
The fate of private equity distressed funds
Not so long ago, private equity firms were scrambling to set up distressed credit funds. The thinking was that there were lots of beaten down securities out there that amounted to a once in a lifetime opportunity. It's probably fair to say that the enthusiasm has waned as of late. KKR Financial re
A very interesting idea on executive pay
Credit Suisse gets the award for the most innovative solution to the problem of executive bonuses, in a troubled time. Bloomberg reports that the bank has put a lot of leveraged loans and commercial mortgage-backed debt in a so-called Partner Asset Facility. Executives and other employees will
