Think

Sears: Down for the Count?

Posted by David Diggins on Oct 16, 2018 3:29:01 PM

Many reports are claiming the death of Sears, but is it really dead or just dead as we knew it?

Sears started life in 1892 as a mail-order catalog that sold watches and jewelry. In 1894 the Sears, Roebuck and Company catalog had grown to 322 pages and included sewing machines, bicycles, sporting goods, automobiles and other new items. In the following years the catalog would eclipse 500 pages and adding dolls, stoves and groceries.

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Topics: bankruptcy, sears, Distressed Debt, Restructuring, default, Loans, bonds, News

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

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

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: Restructuring, Distressed Debt, BDC, download, Loans

Q2 2018 BDC Non-Accruals: Medley Capital Corp No Longer Worst Performer

Posted by David Diggins on Aug 15, 2018 5:24:17 PM

Last month we shared a list of the top 10 BDC non-accruals based on first quarter 2018 SEC filings. Now that we are mid-way through August and second quarter filings are readily available, let’s take a fresh look at the first quarter’s worst performer.

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Topics: News, download, portfolio, fair value, Fixed Income, Default Rate, BDC Filings, Loan Default Rate, Second Lien, Restructuring, Non-accruals, Distressed Debt, First Lien, BDC


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