Private Debt / Direct Lending Overview Credit Fixed Income by Matt - January 8, 2021January 16, 20210 What is Private Debt / Direct Lending? Direct lending, private debt, private credit, private lending, illiquid credit and alternative credit are sometimes used interchangeably for bespoke, structured credit offered by non-bank lenders - going directly to the borrower. As the group of lenders is either a small consortium or just one counterparty,
Credit Agreement Key Terms Credit The Law by Matt - January 8, 2021January 8, 20210 What are some of the key terms of a credit agreement that are important to commercial bankers, corporate bankers, credit investors and restructuring investment bankers? Here are some of the main parts of the credit agreement that are often referenced. Anatomy of a Credit Agreement Recitals Definitions Terms of Commitments and Loans
Analysing Bond Indentures and Credit Agreements Credit by Matt - January 1, 2021January 1, 20210 What to Look for in Credit Agreements As a credit investor, it is important to remember that being higher on the priority of payments is a function that they do not receive the rewards of ownership or equity. The returns on equity are uncapped while tranches of debt can only earn
Credit Cycle – Looser Covenants Credit by Matt - December 19, 2020December 19, 20200 Yield and Covenant Trade Offs What gives rise to a restructuring or financial distress? Often, the seeds for a restructuring are planted when creditors first subscribe for new debt issuance, sometimes under debtor friendly terms. When markets are flush with liquidity and buy-side investors are starved for investment opportunities, creditors sometimes make
Bridge Loans in Private Equity Credit by Bocconi Students PE Club - January 24, 2020January 29, 20200 By Boris Mihaylov and Konstantin Ba Initially posted on the BSPEC blog The world of private equity requires funds to react immediately to potential purchase opportunities. But what if an attractive opportunity arises during the draw down period and the funds required exceed the sum of collected commitments? Bridge loans (appropriately labeled
Interview with: Big 5 Commercial Banking New Grad – Interest Rates, Hours Canada Commercial Banking Credit Interview Series by Karl - December 31, 2019December 31, 20190 Where do commercial bankers usually take clients? Personally, not a lot of knowledge about that – it’s almost always the account manager that does all the wining and dining. I am aware that it’s quite common to get valued clients in the box seats of a hockey game. The account manager
Introduction to Debt Capacity Commercial Banking Credit Restructuring by Matt - September 12, 2019September 12, 20190 Debt capacity is an analysis conducted in determining what is the sustainable level of debt for a company. Debt capacity is a very important concept to understand in credit. As such, debt capacity is the first thing they teach in the training manual for corporate and commercial bankers – how much