The tailwinds that drove spreads wider haven't gone away, the only thing that has really changed is the Fed's accommodation. Oil is still a volatility contributor.

Darren Hughes

Categorized in : Mergers & Acquisitions

BAML is saying the credit cycle is coming to an end, what JP Morgan is saying is that we still have two or three years left.

The only way it makes sense to me is if you can really tell me that this is a bridge to an IPO, if that is the case, there is potentially quite a bit of upside.

mergers-acquisitions

If that is the case, there is potentially quite a bit of upside, but if it's just a private equity sponsor who has been there for some time and just wants to take some dough out, I don't want to be there.

mergers-acquisitions

There has been so much money coming into the market, it forces you to be active as it's so difficult to pick up paper in secondary.

mergers-acquisitions

This isn't an easy story in terms of the credit. by Darren Hughes

This isn't an easy story in terms of the credit.

mergers-acquisitions

In years past you would sit in a presentation and say: great, this company is not going bankrupt, but fairly boring at 5 percent, definitely part of this year's function is that so much of our market is trading at distressed or recessionary levels.

At the moment, we don't have much appetite for this kind of leverage, we don't think we will be alone pushing back on the over-levered issue.

We don't think we will be alone pushing back on the over-levered issue, for us to get involved, it will require an additional equity contribution.

There is an overall lack of appetite for high-beta Triple C rated issuance, we don't need to buy 11-handle deals when we can buy Single B rated names we already like that are trading at 6% or even 7%.

mergers-acquisitions