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David Diggins

Recent Posts

The Middle Market Loan Advantage: A Look Behind The Curtain

Posted by David Diggins on Sep 18, 2018 5:01:01 PM

[Transcribed from video]

Introducing the Middle Market Loan Advantage. The newest edition to AdvantageData’s suite of credit data products. The Middle Market Loan Advantage complements our syndicated bonds and BDC Advantage modules. With [~4500**] middle market loans, the Middle Market Loan Advantage shines a bright light on this opaque market.

How do we do it? AdvantageData aggregates information from news sources, trading desks, buy and sell-side filings, and more.

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Topics: Loans, Middle Market, Analytics, BDC, business development company, Valuation, Restructuring, Direct Lending, Investment Banks, Syndicated Bonds

The Middle Market Loans Advantage: The Tools and Data to Source Your Next Deal

Posted by David Diggins on Sep 13, 2018 12:25:09 PM

An effective deal sourcing process is crucial to successful investing. Deal sourcing involves generating leads and managing relationships with intermediaries. Strategies for deal sourcing vary among firms. Some firms prefer to employ specialist teams while others prefer using in-house resources.

Regardless of a firm’s strategy, access to the proper tools and the right data are essential for effective deal sourcing. In March, Mergers & Acquisitions published an article that illustrated this concept with Michael Lewis’ book, Moneyball: The Art of Winning an Unfair Game. The book details how the Oakland Athletics baseball team successfully used statistics and analytics to their advantage. The same can be done in the world of deal sourcing.

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Topics: Middle Market, Analytics, market analytics, Distressed Debt, Finance, Restructuring, Fixed Income

The State of the Middle Market

Posted by David Diggins on Sep 11, 2018 11:25:30 AM

Middle market growth continues to be strong. The RSM US Middle Market Business Index (MMBI) posted a score of 134.5 for the second quarter of 2018, just a 2.2-point decrease from the first quarter’s record-high of 136.7 which was buoyed by new tax legislation. An MMBI score greater than 100 signifies growth within the middle market.

Based on strong earnings and revenues, executives were expected to expand hiring and increase employee compensation. Market sentiment among middle market businesses barely swayed despite increased tension over international trade and the slight tightening of finance conditions around the in the second quarter of 2018, potentially signifying the middle market's continued insulation from broader market trends. [source]

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Duration Risk: The Relationship Between Bond Prices and Interest Rates

Posted by David Diggins on Sep 6, 2018 3:30:33 PM

Duration risk has been a popular theme around buy-side firms as they look to incorporate low duration bonds into model portfolios to reduce interest rate sensitivity and increase liquidity. Typical bond indexes have an average duration of 5-7 years; this will create large outflow of assets in the upcoming quarters and increase popularity among individual securities.

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Topics: Investment Grade, Analytics, bonds, Bonds Maturing, bond market, market analytics, Fixed Income, portfolio, interest rate, duration risk

The Coupon Spread Increase: An Early Warning

Posted by David Diggins on Aug 21, 2018 2:06:02 PM

A quarter over quarter coupon spread increase can be an early warning sign for investors and restructuring advisors that the issuer may be facing financial troubles.

What do we mean by “coupon spread increase”? First, the coupon is simply the annual interest payment paid by the issuer relative to the loan or bond's face or par value. Coupon spreads compare the interest rate differential between two loans or bonds. Say the coupon rate is 5% in the first quarter of the year, and then changes to 7% the next quarter. This would cause a coupon spread increase between it and the coupon of a comparable loan or bond. [source]

An increased coupon spread from one quarter to another is an indicator that something happened – it does not mean there is imminent risk of default. If a company does not meet its obligation to its lenders, it may be required to take some sort of action to make good on its promises of repayment or otherwise remain in good faith. One such action could be an increase of the coupon payment.

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Topics: Loans, BDC, Distressed Debt, Restructuring, download


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  • 529,400+ U.S. and international corporate bonds
  • Over 6,200+ CDS reference entities
  • Over 22,000+ syndicated loans
  • Over 100 equity markets worldwide
  • One platform 14 asset classes from debt to CDS to loans to mid-market
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