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,
China Stocks Investing: New Cold War and Bond Defaults China Fixed Income by Matt - January 7, 2020January 7, 20200 In this post, we continue to discuss themes to understand before investing in Chinese stocks in the 2020s. Investing Amidst the U.S. China Cold War If the current trajectory continues (steady growth at 6% per year) while the Chinese economy continues to decouple from the U.S., there may end up being positive
Distressed Debt Overview Fixed Income Restructuring by Matt - September 5, 2019September 5, 20190 Introduction to Distressed Debt Similar to all other aspects of finance and investing, distressed debt investing means higher risk and higher reward. Distressed debt is in itself a very unique asset class that falls under the jurisdiction of alternative asset managers – primarily hedge funds. Although debt markets are very large
Spreading Investment Banking Comps: Net Debt Corporate Finance Fixed Income Trading Comparables by Matt - March 17, 2019March 17, 20190 Getting to the equity market value of a company was discussed in a prior post. Recall that the basic enterprise value formula is: EV = Equity + Net Debt [Debt - Cash] The extended formula can be: EV = Equity + Debt - Cash & Marketable Securities + Preferred Shares + Minority Interest +
High Yield Bond Characteristics Fixed Income Leveraged Finance by Matt - November 20, 20180 High yield bonds are a major financing vehicle for many corporates. After introducing the high yield bond market in the previous post, we will discuss major characteristics of these bonds here. What matters to bondholders? Coupon, maturity, optionality, security, purpose, relative value - the other factors will all inform the ultimate
Introduction to Green Bonds Debt Capital Markets Fixed Income by Jaycee - November 20, 2018March 20, 20190 Debt Capital Markets - What is a Green Bond? Green bonds are debt securities that use the proceeds to fund sustainable and environmental-friendly projects. Given today's investor focus on environmental, social and governance (ESG) factors - whether for political reasons or other ethical considerations, green bonds can be very attractive bond issuances
Understanding the Yield Curve Finance 101 Fixed Income by Karl - July 29, 2018December 31, 20180 What is Yield? Yield (also called Yield To Maturity, or YTM) is the return investors receive for holding a bond. Yield takes account of both the interest/coupons investors get and the bond price relative to its par value. What are Treasuries? US Treasuries are debt instruments the US Department of the Treasury issues
Distressed Debt Interview Questions Fixed Income by Matt - July 15, 2018January 8, 20210 Here are some distressed debt concepts. How do you set up a screen for distressed debt/special situations opportunities? Use Bloomberg to narrow down quantum of debt that fits in your fund's mandate and have EBITDA/leverage screens to see if they are worth pursuing further/simpler to understand. Where do trade claims rank in the
Interview with: Private Debt Analyst Asset Management Fixed Income Interview Series Leveraged Finance by Karl - January 16, 2018July 15, 20200 What is Private Debt? Think Private Equity, but in debt instruments. Private Debt invests in privately placed bonds that are closely negotiated between the bond issuer and purchaser. Debt structures are often highly tailored to the needs of the issuer. Due to this closed negotiation process, private debt investors often can "peek under
Interview with: Credit Rating Agency Analyst Credit Rating Debt Capital Markets Fixed Income Interview Series by Karl - July 26, 2017March 5, 20180 Interview conducted with a director in corporate banking at a major bank What is the objective of a ratings agency and a credit rating? How do credit agencies get paid and who are the main players in the space? Is there a difference in compensation ranges for the various agencies? Rating agencies