Americas Primary Quarterly: Credit Spreads, Rates and Mixed Macro Messages
Every quarter, our Americas Performing Credit Research team compiles a comprehensive primary report showcasing key highlights from the preceding quarter.
The unusual market conditions in the second quarter, discussed in more detail in the report, were not associated with any obvious across-the-board improvement in covenant quality. As deal volume picked up, the second quarter’s high-yield issuances included several sponsored LBO deals, which generally featured aggressive covenant packages. However, in a number of deals, investor pushback resulted in meaningful improvements in covenant protections for noteholders, potentially indicating a more hospitable climate for noteholders seeking to reduce risk through stronger covenants.
In this report, our team highlights deals by Copeland, Cvent, Citrix/Cloud Software, Univar, MoneyGram and more. Also, we suggest that there may be opportunities for investors to seek better covenant protection in the current market.
For a detailed analysis, the full report can be downloaded below.