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Investors pull $2.37B more from US high-yield funds; YTD outflow hits $17.6B

March 31, 2023

US high-yield momentum evaporates late in Q1 as Fed policy comes home to roost

March 29, 2023

With LBOs scarce, refinancings dominate Q1 leveraged loan activity

March 27, 2023

Investors pull $2.37B more from US high-yield funds; YTD outflow hits $17.6B
Leveraged Loans

Investors pull $2.37B more from US high-yield funds; YTD outflow hits $17.6B

March 31, 2023

Even as risk-sentiment proxies showed signs of healing at quarter-end, after a downdraft from the mid-month banking crisis, investors withdrew $2.37 billion more from US high-yield retail funds over the week to March 29, marking outflows now for seven straight weeks, and in nine of the last 10 weeks, per Morningstar.
US high-yield momentum evaporates late in Q1 as Fed policy comes home to roost
Leveraged Loans

US high-yield momentum evaporates late in Q1 as Fed policy comes home to roost

March 29, 2023

The long stalled high-yield issuance engine started to rev in the new year as investors dared to hope the Fed could engineer a soft landing for the economy while vanquishing inflation, but spluttered late in Q1 as tighter monetary policy began to bite.
With LBOs scarce, refinancings dominate Q1 leveraged loan activity
Leveraged Loans

With LBOs scarce, refinancings dominate Q1 leveraged loan activity

March 27, 2023

A promising start to the new year for the leveraged loan market was derailed in March as heightened recession fears and a banking crisis left investors on edge.
Leveraged loan fund withdrawals deepen to $1.94B as outflow streak hits 20 weeks
Leveraged Loans

Leveraged loan fund withdrawals deepen to $1.94B as outflow streak hits 20 weeks

March 24, 2023

With the banking crisis keeping markets on edge, investors pulled $1.94 billion from US leveraged loan funds for the week ended March 22, according to Morningstar. This is the largest weekly outflow since last June and is the twentieth consecutive week in the red, with $13.58 billion exiting the asset class over that span.
IHO launches €500M sustainability-linked PIK-toggle note
Leveraged Loans

IHO launches €500M sustainability-linked PIK-toggle note

March 23, 2023

IHO Verwaltungs has launched a €500 million, five-year (non-call two-year) sustainability-linked PIK-toggle note which will partially refinance its existing €800 million secured PIK-toggle notes maturing in 2025. Deutsche Bank (B&D), BNP Paribas, BofA Securities and Citi are joint bookrunners on the offering, and will hold an investor call at 2 p.m. GMT today, with a roadshow set to run through tomorrow.
Avaya reorganization plan confirmed as RSA results in speedy bankruptcy
Leveraged Loans

Avaya reorganization plan confirmed as RSA results in speedy bankruptcy

March 23, 2023

Avaya Holdings Corp. announced today that, roughly five weeks after filing for bankruptcy protection in the Southern District of Texas, the court has confirmed its reorganization plan. The reorganization will trim Avaya’s total debt by more than 75%, reducing it to roughly $800 million, from around $3.4 billion, and improve liquidity by over $650 million, according to company press releases. Leverage is projected to be under 1x after emergence, the company added.
Chasing waterfalls: FINMA defends $17B write-down of Credit Suisse AT1 bonds
Leveraged Loans

Chasing waterfalls: FINMA defends $17B write-down of Credit Suisse AT1 bonds

March 23, 2023

The Swiss financial regulator's decision to wipe out holders of Credit Suisse's AT1 bonds as part of the sale to rival UBS prompted an outcry from investors that's likely to rumble on.
Amid investor retreat from risk, leveraged loan fund assets shrink to 21-month low
Leveraged Loans

Amid investor retreat from risk, leveraged loan fund assets shrink to 21-month low

March 23, 2023

Assets under management at mutual funds and ETFs investing in US leveraged loans have been taking big hits lately as retail investors retreat from risk, amid still-rising rates and market continued volatility.
European private equity funds shift to value investing to counter volatility
Leveraged Loans

European private equity funds shift to value investing to counter volatility

March 21, 2023

The euphoria experienced by Europe's private equity markets over recent years may be wearing off, as players facing a multitude of challenges are forced to downsize their ambitions amid falling LBO deal volume.