Globally, the private credit mar

2021/05/21

Globally, the private credit market continues to experience strong growth. This weeks chapter 11 cases included a filing from asphalt construction company Premier Paving Ltd., extending 2022s spike in industrials sector filings, stemming primarily from the construction subsector. The lockdown has had an immediate and tangible effect on Chinese real estate companies, which constitute some of the most active credits in our coverage universe. Send Feedback to petition@petition11.com. $IO; distressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. April 2022 also saw the largest year-over-year declines since January 2021 in the median numbers of contracted sales, contracted sales areas and implied average selling price from 34 developers that had reported April operating stats, according to Reorgs May 19 analysis. sequel khokhlov oleg Alright #bankruptcy geeks, I ponied up to buy my @petition subscription and you should too - this is the deepest and most insightful (and funniest) coverage of complex workouts and bankruptcies out there today. debt distressed schroders strikes generation deal To put it another way, unwinding complex derivatives contracts in the wake of the Lehman Brothers bankruptcy might ultimately lead you to an international investment bank as counterparty. take on the next phase of the SPAC market "We cant wait to see the deluge of diarrhea thats gonna hit the newswires. For junior folks,PETITIONis an educational tool that is -- in contrast to other dry and technical resources -- actually interesting and fun for them to read. To request trial access to Reorg for you and your team, click here. That's right, pizza. But can this be sustained as the credit cycle turns? S&P noted in a May report that offshore defaults for Chinese bonds in 2021 broke the prior 2020 record by 4.2 times in terms of amount, with a 3.3% default rate driven by unprecedented failures of property firms. Fortune highlighted us in The Ultimate Guide to the Best Business Newsletters. Buzzfeed discussed us here. High-yield bonds have been largely shut out of the market in Asia this year following the collapse of Chinas real estate market. What is clear though is that some things have changed, but the focus on Chinas Dynamic Zero Covid strategy and its widespread lockdowns has largely overshadowed a loosening of regulatory policy towards the countrys real estate sector. It will likely be months before easing measures have a material impact on the market. - great product! While low dollar price entries on generally unsecured offshore dollar bonds may offer an attractive entry into a long-dated restructuring, the attraction of private credit right now and the reason for a growth in China-focused credit funds of various strategies is the ability to perfect onshore senior secured first lien real estate loans in RMB against real collateral, for those funds that have the personnel, connections and experience onshore. doubles debt freedoms ipfs If you havent already, need to subscribe to. Stat. Our primary product is an a$$-kicking email briefing sent to Members every Sunday. Fireside Chat: Has private debt come of age in Asia? New York Magazines Intelligencer noted us here. If you have any interest in distressed assets Petition is worth the $49/month or $499/year. I think we'll see a similar story with this one that $CADE lent on newsletter for the best, opposite of snooze-fest analysis of restructuring/disruption news across industries (and A++ pop culture references), This!!! If you are a restructuring professional who isn't following @petition and getting their newsletter yet, you should fix that. service@prospectnews.com. The same report notes that 2022 will see even more bonds due at $103 billion, larger than both 2020 ($87 billion) and 2021 ($96 billion), and that the high default rate may continue. AndTurnarounds & Workouts listed us among theTop Internet Bankruptcy Resources two years running. Leaders Panel: Finding value in private credit which strategies are most effective in the current market? PETITIONprovides analysis, commentary and curated links about restructuring and bankruptcy. A poll of small and medium-sized companies in Shanghai conducted this month showed that of 941 respondents, 61% said they could not survive beyond six months. Call 212 374 2800 or e-mail: Sector Focus Panel: Asia real-estate outlook for private debt investors. Property developers including Shimao, Logan, Jingrui, Agile and a Powerlong subsidiary have delayed release of 2021 audited financial statements citing pandemic control measures in the mainland since March. For junior folks,PETITIONis an educational tool that is -- in contrast to other dry and technical resources -- actually interesting and fun for them to read. Stat. An absolute pleasure. Tired of being left out. What is the outlook for returns in direct lending, fund of funds, distressed debt, special situation funds, and mezzanine finance? The wave of cryptocurrency cases also continued this week, with a filing from Celsius Network, following filings earlier in July of the chapter 11 case of Voyager Digital and the chapter 15 of defunct cryptocurrency hedge fund Three Arrows Capital. Thanks for the hard work. And Turnarounds & Workouts listed us among theTop Internet Bankruptcy Resources three years running. After reading us, youre friends, colleagues and clients will be like: We send two newsletters a week one on Sunday and another on Wednesday. - Janice C. Probst, PHD in "Prisoner's Dilemma: The Importance of Negative Results". SPAC performance; According to minutes of a May 25 teleconference held by the central government officials with those at the provincial and local levels, in April, industrial production value-add was down 2.9% year over year, compared with a 53% year-over-year increase in March. Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets. Long characterised by large-scale, stable returns, downside protection, and measurable risk, real estate has been considered one of the key opportunities for private debt investors focused on Asia. But with the $60 billion wipe-out of Terras stablecoin terraUSD and Bitcoin and Etherium losing 70% of value, bankruptcy proceedings have emerged along with the meme barrage. Using Reorgs new restructuring dataset, included in Credit Cloud, the analysis reveals that since 2020, five debtors have emerged or will emerge from bankruptcy with more funded debt than they had on their petition dates. View from the Top: How resilient is private debt as the credit cycle turns? As an added pressure, the primary markets are all but shut, leaving companies with upcoming maturities between a rock and a hard place and banks on the hook for underwritten deals. While the PBOCs May rate cut signaled that a freefall in Chinas economy would not be tolerated, and acknowledged the critical role that real estate plays in the economy, developers still struggle with reduced contracted sales and a lack of access to funding. https://t.co/BhW2HBl8gM https://t.co/E6bb3nuJzy. To receiveregularcontent including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. In Europe, where the leveraged loan and the high yield bond markets are still struggling to kick start in earnest, some restructuring talks have picked up pace too. Some predict that the people departed will come back or be replaced.

Please. We accommodate group subscriptions. How concerned should investors be about warnings around systemic risks, market opacity, standards and illiquidity issues?

The recent pace of growth in the alternative credit market has taken everyone by surprise, not least regulators and market watchers, some of whom are raising concerns about the potential for systemic risks. Its hard not to focus on the economy. Where are the regional hot spots for value, and has the pandemic affected the risk outlook for real estate? How worried should investors be about transparency in this market? Look up individual cases, search by case terms or see recent filings. The notes, issued through New Metro Global, carry a parental guarantee from Seazen Group, and Reorg reported from sources that they were issued with support from the company chairmans associates.However, as we also reported, the issue of the USD notes combined with a May 30 issueof RMB 1 billion ($150.1 million) 6.5% 2+1 year credit-enhanced MTNs due May 30, 2025 can only be taken as an indication of strength, regardless of credit enhancements or support, as Seazen issued both a rare high-yield USD note and achieved onshore quota to issue. The two are not and should not be mutually exclusive., On November 11 and then, in a more fulsome manner in November 18s Biopharma is in Pain, we noted that Synergy Pharmaceuticals Inc. ($SGYP) appears to be on the brink of bankruptcy. Looks like we were right on. come for the A++ corporate restructuring headlines, stay for The Wire quotes. Send Feedback to petition@petition11.com. After reading us, youre friends, colleagues and clients will be like: We send two newsletters a week one on Sunday and another on Wednesday. You will be contacted by e-mail towards the end of the trial to ask if you wish to subscribe. Set against that, Chinas policy response to the slowing economy has signaled an intention to support the real estate sector, effectively recognizing its economic importance. Email us for details: petition@petition11.com. Under such circumstances, predictions are best kept broad and vague. I appreciated their thoughtful, hopeful take on the possibility of more journalists running their own show via paid newsletters. Back then, the modern metropolis was full of youthful pride and ambition to eventually rival Hong Kong to be the next financial hub in Asia. Its easy to argue that little visible progress has been made in offshore restructuring of Chinese real estate bonds in the first half of 2022, but regulatory loosening has been overshadowed by Covid lockdowns and the countrys economic slowdown. But they do not constitute a viable financial market, and sources of capital available to most developers are limited in the extreme. Tired of being left out. Ultimate outcomescannot be predictedwith precision. To what extent has it matured to meet the risk and return profile of an increasingly sophisticated pool of global investors? Curated financial news, analysis and commentary with an emphasis on distressed investing, restructuring and bankruptcy. As Shanghai is reopening after a months-long Covid-19 lockdown, the Chinese government is eyeing economic recovery and picking winners and losers in the property sector by hosting a virtual road show for five privately held developers to pitch new bond offerings. Its like Stratechery meets the skimm for people who care more about covenants than the cloud and Kardashians. Doesn't surprise me, sadly also makes me even more bearish about all these rx-ed PE deals blowing up as the cycle turns Here is Part I of the interview (part II coming on Sunday). . The company was formed in 2012 under BVI law, states the declaration, and is wholly owned by Singaporean corporate parent Three Arrows Capital Pte. Out of the years nine, six have filed in the last 45 days: From Reorg Asias Managing EditorsIn this column, managing editors Stephen Aldred and Shasha Dai take turns writing about trends in high yield, distressed debt, restructuring and bankruptcy in major Asian markets including China, Southeast Asia, India and Australia. Now, as the world economy starts to normalise, and live with Covid, and as talks of tapering become reality, solvency is once again an issue for businesses. Learn more: Long ago and far away, a deeply cynical editor once told me that there was a simple trick to writing financial trend stories: If you wait three years, he said, you can recycle each one of your stories, because markets will have forgotten that you ever wrote them. Crypto has always been volatile, even before an extended run-up fueled by a search for returns in a low interest-rate environment and legions of get-rich-quick day traders locked in bedrooms during a global pandemic and fed on a diet of headlines touting fabulous returns. Our staff member plans to return to Shanghai when it reopens. Join below today. LP Leaders Panel: Is this the right time to expand allocations in private credit? To receive regular content including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. is a smart and hilarious newsletter that you should totally sign up for, Subscriptions . is a banger. Meanwhile, despite border closures, Australian real estate private capital deal-making, meanwhile, rebounded to reach $27.4 billion in value in 2021, up from a low of $15.8 billion in 2020 under the impact of Covid-19, according to recent Preqin data. Weekly highlights from our global intel and expert analysis. To what extent is alternative credits interconnectedness with the wider financial sector an issue that cant be ignored? Every trading day, the newsletter brings you: All publications are available via e-mail (recommended) or print delivered by mail. It filed this am in New York. It will be some time for the Bund to be crowded again. Foreign representatives for TAC originally filed a chapter 15 petition in New York on July 1. first look at any new initiatives we can get off the ground (e.g., new content distribution channels, etc.). Their writers are a Breit bunch with a burning passion for the space, who Sea trends and Drill down on Hot Topics, it's the Tops. A further truth is that Asia remains under-penetrated for private credit and direct lending strategies compared with North American and European markets, as panelists noted at the recent FTLive/Reorg conference on private credit held on May 4 and 5.

While still below the $29.3 billion recorded in 2019, the figure is not far off pre-pandemic volumes of 2017 and 2018, when deal values of $27.6 billion and $20 billion, respectively, were recorded, as Preqin noted. The investor base that provides capital offshore and onshore is significantly reduced and substantially altered, and many funds still see China as uninvestable for the moment. To what extent are private debt market risks reduced by the characteristics of the market, such as floating rate loans, privately negotiated deals and shorter durations? Its important to draw a distinction here between offshore unsecured high-yield dollar bonds of Chinese real estate developers, and senior secured private loans onshore in China, funded in RMB. PETITION is a digital media company focused on disruption from the vantage point of the disrupted. because they're a must-read in the world of bankruptcy and distressed debt. Email us for details: petition@petition11.com. Unlocking Opportunities in Private Debt as the Credit Cycle Turns Celsius is the years ninth chapter 11 involving more than $1 billion in liabilities and the month of Julys third. Membership gets you: access to community features including comments and ask us anything sessions; and. The rough idea of this op-ed was to try to establish if anything had changed, and whether on that basis I could ignore what I had learned in 2021 and try to make predictions.

Any opinions or other views expressed in this column are the authors own and do not necessarily reflect the opinion or views of Reorg or its owners. Oh @petitioncome for the A++ corporate restructuring headlines, stay for The Wire quotes. What are the most effective investment opportunities in this market, from direct lending to mezzanine and distressed debt? The risk is heightened because a significant portion of the debtors assets are cash and digital assets such as cryptocurrencies and non-fungible tokens that are readily transferrable, the motion shows. But have recent events in Chinas real estate market altered that picture?

Sitemap 38

- le creuset enameled cast iron safe

preserved eucalyptus branches