If you haven't checked out the Primer, take a look. It's a great promotion for the asset class and resource for newcomers or those interested in the leveraged loan market. We hope you'll share it with anyone who might find it useful.
The Primer can be found at LeveragedLoan.com, LCD's free website featuring select stories from LCD News, as well as loan market trends, stats, and analysis.
Along with updated charts we've added to the Primer another excellent video from Paddy Hirsch, who explains just what leveraged finance is, and how it comes in handy (to private equity firms undertaking a big LBO, for instance).
Paddy's explainer videos make a great introduction to the asset class (check out "What is a Leveraged Loan?" on the Primer).
Among the charts included with this release of the Primer:
- Leveraged loan volume – historical
- LBO loan volume
- Refinancing volume
- Market flex deals: issuer-friendly vs investor-friendly
- CLO issuance
- Loan fund assets under management
- Loan fund inflows/outflows
- Leveraged loan issuance by industry
- Purchase price multiples/equity contributions, LBOs
- LBOs leveraged 7x or higher
- Largest private equity loans, 1Q 2016
- Covenant-lite loan issuance
- Historical leveraged loan default rate
The Loan Market Primer is one of the most popular pieces LCD has published. Updated annually (print) and quarterly (online) to include emerging trends, it is widely used by originating banks, institutional investors, private equity shops, law firms, and business schools worldwide.
Here’s the Primer table of contents (see the submenus for each category online):
- What is a Leveraged Loan?
- Market Background
- Leveraged Loan Purposes
- How are Loans Syndicated?
- Types of Syndications
- The Bank Book
- Leveraged Loan Investor Market
- Public vs. Private Markets
- Credit Risk – Overview
- Syndicating a Loan – by Facility
- Pricing a Loan – Primary Market
- Types of Syndicated Loan Facilities
- Second-Lien Loans
- Covenant-Lite Loans
- Lender Titles
- Secondary Sales
- Loan Derivatives
- Pricing Terms/Rates
- Original-Issue Discounts
- Voting Rights
- Mandatory Prepayments
- Spread Calculation