Cloud 9fin

When JP Morgan priced Ivy Hill XXI in July it marked the bank's entry into middle-market CLO arranging and underlined the expansion of the mid-market CLO industry. That deal also re-sparked the inevitable question of whether now is the right time for private credit CLOs in Europe.

For this week’s episode of our podcast, Josie Shillito quizzes Christine Ferris, head of JP Morgan's global CLO primary business on this opportunity.

Is Europe ready? And what would it do to the private credit market as we see it now?

Can banks really compete with the big guns of private credit? Many are trying — but there are multiple constraints holding them back, from regulation all the way through to organizational structure and culture.

This is just one of the topics we discussed in our podcast with Eric Muller of Oak Hill Advisors, a seasoned veteran not just of the direct lending market but also of the banking industry.

Along the way, we quizzed him about increased regulatory scrutiny of private credit firms, the clampdown on tax-minimizing ‘season and sell’ structures, the quest for the $10bn unitranche, and the growing trend of private lenders taking the keys to struggling companies.

Lenders tend to feel reassured knowing their docs have a J Crew blocker, but not all J Crew blockers offer the protection they might expect.

For this week’s episode of our podcast, Alice Holian and Olivia Mantock cover the ins and outs of J Crew blockers and run through some novel formulations they’ve seen in 2023.

Is the ‘Dechra standard’ going to take off? Or will blockers become increasingly limited in scope?

It’s been a hot and heavy summer, and the pipeline is looking encouragingly full for next month — especially compared to this time last year.

For this week’s episode of the podcast, Will Caiger-Smith and William Hoffman take a tour through the primary calendar and evaluate each deal’s chances for a smooth syndication.

Featuring: Worldpay, Vistra, Syneos Health, Simon & Schuster…and many more. Check out our piece from earlier this week for the full slate.

ESG investing has come under increased scrutiny for its ability to effect change in recent months, following the controversial Sustainable Finance Disclosure Regulation in Europe and rising political pushback against the movement in the US.

For this week’s episode of the podcast, our host Jennifer Munnings sat down with Rupert Davies, a sustainable finance specialist with over eight years of experience, to have a frank discussion about the state of ESG.

Is ESG just a box-ticking exercise for asset managers, or can it have a real world impact? Will the US ever align with Europe, when it comes to the depth and breadth of reporting that is needed to inform investors?

Casino operator Penn Entertainment is betting that a $2bn partnership with ESPN will supercharge the company’s foray into the online sports wagering market.

It could be an expensive gamble: online sportsbooks have been a hotspot of growth in the US gambling industry, but competitors such as DraftKings and FanDuel are already starting to pivot to profitability from a “growth by any means” mentality after spending big to take market share.

Will Penn’s investors have the patience for another growth story? And how could a regulatory backlash against online gambling impact the industry?

On this week’s US edition of Cloud 9fin, US deputy editor David Bell quizzes senior reporter William Hoffman on Penn’s new tie-up with ESPN and what it means for leveraged credits in the sector.

German wire and cables manufacturer Leoni is in the process of implementing its restructuring plan, approved by the Nurembourg court under the new German bankruptcy regime StaRUG. It is the first big test of the new framework, which proved useful for cramming down dissenting minority shareholders and getting an agreement in place with several stakeholders in time to save the group from insolvency.

9fin sat down with Marlene Ruf, restructuring partner from Kirkland & Ellis, who represented a group of creditors holding its €750m revolving credit facility (RCF I) which was due to mature two months ago. Marlene takes us through what a StaRUG process entails, how it helped with Leoni’s restructuring plan as well as the precedent this case sets for future restructurings under the regime.

Sometimes it feels like the next wave of distress in the debt markets is always two quarters away. What if it’s already here — less of a tsunami and more of a gradual rise in the sea level?

Chris Wright runs the private markets group at Crescent Capital, and has plenty of experience as a junior capital provider to stressed credits. As we reported this week, tapping third parties for instruments such as preferred equity and holdco PIK debt has become an increasingly popular strategy for borrowers facing tricky maturities.

In this week’s episode of the podcast, Will Caiger-Smith quizzes Chris on what these types of situations can teach us about distress, and how the markets deal with it in 2023.

Recent developments in the German Real Estate industry have attracted significant attention due to controversial governance and questionable transactions, which were further exacerbated by a series of short-seller attacks.

However, are these factors solely responsible for their bonds trading at distressed levels and the equity at a considerable discount to book value?

For this week’s podcast, Chris Haffenden, Editor at 9fin, sits down with Senior Distressed Analyst Emmet Mc Nally and Credit Analyst Hazik Siddiqui to talk about our recent special report on German Real Estate.   

The podcast, much like the report, covers everything from the key terminology and inputs determining credit ratios and KPIs, to what potential triggers lie ahead for companies with near-term maturity walls and where our analysts see best value in the market.

Want to get your hands on a copy of the full special report? 👉 Join the waiting list to get your copy next Wednesday — https://lnkd.in/e6UxnsRt

Credit ratings are one of the foundations of modern credit markets — and the National Association of Insurance Commissioners wants in on the action.

Several months ago, the regulatory association announced plans to adjust the capital charges for insurance companies investing in CLO debt and equity, by developing an in-house rating methodology instead of relying on the big three agencies.

The plans were already controversial within the CLO industry. But in a recent update, the NAIC has expanded the scope of these new rules, sparking broader outrage from industry observers as well as several Republicans on the House Financial Services committee.

The NAIC says it’s looking to prevent “regulatory arbitrage”, but critics see the rules as a “land grab” for rating fees. For this week’s podcast, Will Caiger-Smith sits down with US deputy editor David Bell to unpack the controversy.