Barbara Rismondo’s Post

Falling interest rates, moderating inflation and declining defaults will characterize the leveraged loan and CLO markets in 2025, but what should borrowers anticipate in this new, friendly environment? Dive into our CLO and LevFin 2025 Outlooks to learn more: https://mdy.link/4fFIHio #MoodysOutlooks2025

Check out our recent global leveraged finance outlook 2025 https://lnkd.in/dkadAvuX

How will the improving macroeconomic indicators influence the growth of CLO issuance in the EMEA region? What strategies can be employed to manage the potential erosion of key CLO credit metrics as weaker credits become more prevalent in amortizing portfolios? How does the performance of EMEA CLOs compare to their US counterparts in terms of credit quality and issuance trends?

Capital One reports that while some borrowers accumulated significant debt during the pandemic, overall consumer credit health is stable, with most metrics returning to pre-pandemic levels. CEO Richard Fairbank highlighted that those struggling with debt are not primarily low-income borrowers, and stronger income growth at the lower end of the spectrum since 2020 has helped stabilize trends. The bank’s credit performance remains strong, with a 9% year-over-year increase in net interest income, despite some minor impacts from changing Federal Reserve rates. Capital One remains optimistic about its credit outlook, reducing its loan-loss reserves as a sign of confidence in current consumer stability. #CapitalOne #payments #fintech https://lnkd.in/ghvK_TqM

Leveraged-Loan, CLO 20x Lead Over Bonds May Fade High-yield-tech leveraged loans' predominance over fixed-rate, new-debt issuance is poised to persist through the remainder of 2024 despite a near-term rise in shorter-dated Treasury yields. Activity in the sector's leveraged loans and CLOs is likely to remain relatively large, yet fall closer to a more historical 10-15x range over plain-vanilla term issuance as fixed-rate maturities and in-the-money callable debt rise into 2025. Full report: https://lnkd.in/eifhYbBW Bloomberg Intelligence #bloombergintelligene Alex Reid

Asset-based lenders can find themselves in choppy waters when borrowers default, but with smart planning and strong digital asset protections, they can navigate the challenges. Explore key tactics to unlock the value of intangible assets in an Article 9 sale in the most recent Hilco Global Smarter Perspective: https://lnkd.in/g9eeqReR #IntangibleAssets #HilcoGlobal #HilcoStreambank

Why would an investor put up a large amount of capital just to borrow a smaller amount in return? Sounds counterintuitive, right? Well, not to those in the know. Overcollateralization is a widely used strategy that secures loans by pledging more assets than the loan’s value. Why? Because it significantly reduces risk. If a borrower defaults, the lender can liquidate the excess collateral to recover their investment. This practice is a cornerstone of structured finance, commonly found in mortgage-backed securities (MBS), asset-backed securities (ABS), and stablecoins. Wondering why it’s so effective? Read on to learn more about this crucial strategy. ➡️ https://lnkd.in/dimS4S5q #InvestmentStrategy #RiskMitigation #Overcollateralization #StructuredFinance #FinancialSecurity

In the latest research from #MorningstarIndexes', Dan Lefkovitz unpacks drivers of growth and resiliency in the broadly syndicated #leveragedloan market, how bank loans fit into a Sharpe-optimized portfolio, and why broadly syndicated loans make a great parking lot for #PrivateCredit investors waiting to deploy dry powder. Dan Lefkovitz and Elizabeth Templeton it was fun to collaborate with you on this! https://lnkd.in/daEvqidQ

Asset-based lenders encounter turbulent waters when borrowers default, but strategic planning and digital asset protections can help them stay afloat. Learn essential approaches to optimize intangible asset value during an Article 9 sale in the newest Hilco Global Smarter Perspective: https://lnkd.in/g7eAgpbX #IntangibleAssets #HilcoGlobal #HilcoStreambank

As we enter the summer of 2023, market conditions are remarkably stable, we are maintaining our pricing and leverage metrics for the second month in a row. This follows a period of tightening credit spreads and rising leverage multiples, but it does not indicate a slowdown. Instead, the aggressive issuance environment driven by non-bank direct lenders offers an unparalleled opportunity for issuers. In this blog, we explore the emerging “barbell effect,” examine the competitive landscape, and discuss why now may be the perfect time to secure favorable financing terms. Stefan Shaffer shares the latest US Private Capital Report for July 2024. Read the full report below.