All Loans articles
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White papers
Private Credit: Barbarians inside the syndicated loan gates
In the syndicated loan market—during times of borrower distress—documentation loopholes are allowing majority lenders to disproportionately benefit at the expense of minority holders. This practice, known colloquially as “lender-on-lender violence,” presents a significant challenge to the sector. The menace is growing by the day.
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White papers
Multifamily Gap Capital
Dags Chen and Lincoln Janes discuss that while the cooling of the Sunbelt multifamily property market is creating cracks in the capital stacks of owners, it is also presenting potential opportunities for investors.Many recent buyers and developers of Sunbelt multifamily properties are overleveraged and need capital to bridge the gap between their debt balances and the significantly depreciated equity value of their holdings. The current pall over the asset class, however, obscures its long-term attractiveness for patient investors.
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White papers
ESG Momentum in Non-Investment Grade Credit
Issuers are facing an increasingly high bar in relation to environmental, social and governance standards. Our recent panel discussion provided ideas on setting goals and working toward achieving them.
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White papers
Why Allocate to Private Credit in Your DC Pension Plan?
Saving for a pension isn’t getting any easier. But allocations to private assets—such as private credit—could help. It’s getting harder for UK defined contribution (DC) savers to accumulate realistic amounts of capital for their retirement.Prospective real returns from most asset classes look unlikely to match those of recent years. And the cost-of-living crisis is making it tougher for savers to maintain their current pension contributions, let alone increase them in future. How can DC savers get ahead?
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Video
10 Minute Masterclass—Senior Secured Loans
Senior secured loans offer a unique blend of attractive yield potential with some protection against both credit and interest rate risk. At a high level, senior secured loans have the potential to provide attractive risk-adjusted returns and other portfolio benefits.
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White papers
Economic Monthly: Strength or Softness?
Consumers have still not run out of runway. Despite having burned through the famous “excess savings” from pandemic-era stimulus, and despite a softer labor market, we continue to see consumers willing and able to spend. As we elaborate below, continued credit availability, investment spending and the labor market provide enough space for households to maintain their spending habits for the next several months.
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White papers
European loans: Why now?
BSP-Alcentra believes the European loan market has a more defensive sector profile, and an allocation to European loans is still very attractive, even within a declining interest-rate environment.
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White papers
Local banks lead on physical climate risk
The increased frequency of wildfires and flash flooding is already hitting insurance companies. But what about the climate exposures faced by banks in their mortgage and commercial loan books? Will Farrell investigates.
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White papers
Senior Secured Loans: 101
At $1.8 trillion, the global senior secured loan market has grown substantially over the last 15 years. Here, we break down the key characteristics of the asset class and touch on how investors can access the many potential benefits on offer.
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Video
Navigating Dynamic High Yield Markets
We have been investing in high yield bonds, loans and CLOs for decades—managing investments on behalf of our clients through the ups and downs of multiple market cycles. And importantly, we have done so with consistency.
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Blog
Not All AAA CLO ETFs are Created Equal
Actively managed AAA CLO ETFs provide access to the highest-rated CLO tranche but not all AAA CLOs are created equally, and actively managed ETFs are showing notable dispersion in positioning.
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White papers
Underwriting the Underwriters: Finding Opportunity in Consumer Loans
When it comes to investing in consumer debt, headlines may be misleading. We see opportunity.
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White papers
The Coming Wave of Homebuyers
How higher rates for longer could be positive for U.S. consumption.
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White papers
High Yield: What the Market May Be Missing
A closer look at the dynamics shaping today’s high yield bond and loan markets reveals the potential for continued strong performance ahead.
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Podcast
High Yield Bonds & Loans: Adapting to Changing Markets
Against a backdrop of stickier-than-expected inflation, higher-for-longer rates, and persistent geopolitical risks, what is the outlook for high yield bonds and senior secured loans? Global High Yield Portfolio Manager, Brian Pacheco, weighs in.
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White papers
Unveiling niche opportunities in private credit
Most private credit managers focus on extending loans to upper and middle market companies owned by large private equity sponsors.
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White papers
Direct lending is not going away
A look at private credit, and why increased activity in the broadly syndicated loans space is not necessarily a bad thing for direct lending, and vice versa, from Benefit Street Partners Managing Director Anant Kumar.
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White papers
Servicing debt from the top of the cash waterfall
The structure of the US$275m senior-secured term loan is illustrative of how the Federated Hermes Trade Finance Strategy can generate competitive yield, while at the same time mitigating risks, and using top-line cash revenue to repay investors.
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White papers
Direct lending: the power of strategic alliances
In an increasingly competitive direct lending landscape, deal origination is critical to achieving consistent returns across the asset class.
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White papers
Private Credit Allocations vs Leveraged Loans and High Yield
The growth of private credit assets under management in recent years has drawn increasing interest and scrutiny from investors. The scale of the expansion suggests a strong appetite among investors, but the lower liquidity and naturally opaque nature of private credit can make comparisons with public credit alternatives such as leveraged loans and high yield bonds difficult.