Now, current macroeconomic and geo-political tailwinds and a pervasive risk-off sentiment in the region are generating further opportunities for private credit solutions, as normal sources of capital supply are shut off, both in regional and domestic markets. come for the A++ corporate restructuring headlines, stay for The Wire quotes.
Mallinckrodt second lien notes are indicated with a 12% yield and Buckingham Senior Livings 2021B notes are indicated 42.3/43. In 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. Foreign representatives for TAC originally filed a chapter 15 petition in New York on July 1. An absolute pleasure. 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. 
PETITIONmakes its thousands of Members smarter about disruptive trends and distressed debt. https://t.co/XYx5CSa9Ko. Impediments to audit was just one direct impact on developers. Having moved from the margins to the mainstream, this previously niche asset class is proving a real disruptor in debt capital markets, as investors seek out steady and healthy returns, and borrowers opt for new non-bank sources of finance. Our Members/readers a highly targeted group of investors, lawyers, investment bankers, consultants, C-suiters, board-of-director-types, and others trying to keep up with rapid change and the disruption that comes with it use our unique news and insights to source investment ideas, identify and pitch new deals, develop business, advise clients, and more. Join below today. It is a story about technological disruption, leverage, capital markets, Carl Icahn & pizza. ThePBOCs announcementnoted, though, that the minimum mortgage rate for second home buyers was unchanged, with the countrys central bank reiterating that housing is for living in, not speculation.. Fortune highlighted us in The Ultimate Guide to the Best Business Newsletters. Buzzfeed discussed us here. Equally, though, its true that the strategy has evolved, deal volumes have risen consistently over successive years, and funds and their dry powder have expanded. https://t.co/q1A3M5OHgj. To what extent will current low interest rates affect returns? Some predict that the people departed will come back or be replaced. The potential for this market is enormous, but there are risks. iHeart @petition, a great new newsletter for people interested in distressed to lien on for an Ultra fun read every Sunday night. 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. Curated financial news, analysis and commentary with an emphasis on distressed investing, restructuring and bankruptcy. 
If you are a restructuring professional who isn't following. Subsequent to that roadshow, Seazen alsopriced $100 million7.95% 364-day senior notes due June 2023 at par, in a rare instance of a Chinese real estate developer accessing offshore high-yield markets this year. As a #spintrovert since Sept '17, I relate to every part of it. The two are not and should not be mutually exclusive., On November 11 and then, in a more fulsome manner in November 18s Biopharma is in Pain, we noted that Synergy Pharmaceuticals Inc. ($SGYP) appears to be on the brink of bankruptcy. Looks like we were right on. Today marks the 8-year anniversary of Blockbuster Inc's chapter 11 bankruptcy filing. Evergrande has over $300 billion in liabilities and accounts for 16% of Chinas high-yield bond market. 
content including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. In reality, the business was deteriorating so rapidly that the sr subordinated notes were sadly for those investors - out of the $', Sunday #longread: Bear with me.). ", SPACs, CarbonLite Holdings and Another Awesome NOA. Li effectively signaled that Chinas targeted GDP growth rate of around 5.5% for 2022 might not be obtained. is simply fabulous - really without exception. Oh @petitioncome for the A++ corporate restructuring headlines, stay for The Wire quotes. Revolution, yeah. Reorgs editorial leadership has selected the following list of the most compelling and topical situations and distressed activity across our global coverage universe. PETITIONprovides analysis, commentary and curated links about restructuring and bankruptcy. The Petition is my new favorite markets newsletter. Its like Stratechery meets the skimm for people who care more about covenants than the cloud and Kardashians. How important is credit quality as competition for deals intensifies? Facetious title (which made me laugh) aside, some really thoughtful points on many of the practices that have developed in bankruptcy, Independent Directors, Forum Shopping & Third-Party Releases. This has been written many times, but it bears repeating at the outset: What we are witnessing in Chinas real estate and tech sectors isultimately politically motivated, and unprecedented. Their writing is the kind of IP I'd move to an unrestricted sub in a hot minute! To what extent has it matured to meet the risk and return profile of an increasingly sophisticated pool of global investors? 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. This lead was , Here's a little preview of today's subscribers'-only newsletter (dropping in ~30 min). debt distressed schroders strikes generation deal
Its hard not to focus on the economy. #FOMO, @Petition is a smart and hilarious newsletter that you should totally sign up for https://t.co/rTU261acwz, This!!! To what extent will Asia follow a similar growth path? Leaders Panel: Finding value in private credit which strategies are most effective in the current market? Prospect News reserves the right to reject trial requests. 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. Taking direct lending as an example, over the roughly 10 years since I first wrote about the growth of the strategy in Asia, the topic has been regularly recycled. You guys are killing it. Special categories for tenders and market commentary. Earlier in the year, various regional citieslowered down payment ratiosfor first-time buyers, along with providing support through subsidies. High-yield bonds have been largely shut out of the market in Asia this year following the collapse of Chinas real estate market. LP Leaders Panel: Is this the right time to expand allocations in private credit? 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. Can current rates of return be sustained in developed markets, against a fast changing and uncertain macro-economic and geo-political background? Closing remarks followed by VIP Networking Dinner. Keynote: From shadow banking to mainstream asset class is private debt now better than public? How can LPs navigate this complex market with its multiple regulatory frameworks and diverse political regimes? GLOBAL ALTERNATIVE CREDIT SUMMIT 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. Defaults and distressed opportunities seemed likely when the pandemic hit, but stimulus measures and creativity in financing put the market into a holding pattern. Register to attend the webinar HERE. Subscribe. Every couple of years, a fresh batch of data shows how much more dry powder is available for investment through direct lending, how many more funds have been raised for credit strategies and how much deal volumes have risen. One-off 364-day offshore issuances supported by friends and family, backed by an SBLC and/ or a corporate guarantee, do get the job done and certainly bode well for those that can. Really enjoying @petition - great product! Hear from market leading experts ondistressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. 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. How does this shadow banking market compare to other private asset classes in terms of returns and ease of access? pic.twitter.com/w28vtgErD1. Where are the regional hot spots for value, and has the pandemic affected the risk outlook for real estate? fund inflows Having moved from the margins to the mainstream, this previously niche asset class is proving a real disruptor in debt capital markets, as investors seek out steady and healthy returns, and borrowers opt for new non-bank sources of finance. Fortunehighlighted us inThe Ultimate Guide to the Best Business Newsletters.Buzzfeeddiscussed ushere. Thanks for the hard work. After reading us, youre friends, colleagues and clients will be like: We send two newsletters a week one on Sunday and another on Wednesday. debt climb exchanges crisis west distressed coronavirus 8th june After reading us, youre friends, colleagues and clients will be like: We generally send two newsletters a week one on Sunday and another on Wednesday. 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? Please. After a four-hour train ride, she arrived at a city in central China where shes from originally. 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. Reoffer prices are well below par on many new issues. 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. French chilled dough and pancake maker Cerelia is seeking an amendment to be able to raise an 80 million loan amid rocketing input costs. Email us for details: petition@petition11.com. airline threatens 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 extent to which the economic slowdown could affect Chinese real estate developers and restructurings cannot be predicted. Policies: Curation, Terms of Use, Privacy Policy & Disclaimer. Stat. How concerned should investors be about warnings around systemic risks, market opacity, standards and illiquidity issues? You guys are killing it. No sooner was the newest elevated inner city highway erected than it was congested with cars bumper to bumper during rush hours.
is a banger. Bravo for the fab journalism, PETITION. One critical area to watch in the real estate sector in coming months is contracted sales. Each morning the Prospect News Distressed Debt Daily will be waiting in your inbox when you arrive at work. Questions or problems? Some slept overnight in underground parking lots hoping to be admitted into the station. As some of you in the senior ranks go about your business and save jobs going into 2019, consider how you can save jobs for the junior women in your ranks while also letting them pursue a family. Do the benefits outweigh the risks of this dynamic new asset class? is an educational tool that is -- in contrast to other dry and technical resources -- actually interesting and fun for them to read. (Whether this three-year period directly correlates to the short-term memory of financial markets, I have yet to discover.). SPAC performance; Comprehensive market coverage, with the day's events and major movers, all backed with plenty of market color. To what extent does private real estate debt provide an access route to distressed opportunities? Thanks for all your insight. Against that backdrop, Indias current GDP growth as one example cited at the recent conference is fostering demand for private capital to finance performing credits. We accommodate group subscriptions. As the markets in the US and Europe reach maturity, Asia is seen as a new avenue with massive potential for further growth. Hear from market leading experts ondistressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. maverick debt distressed fund its closes 75m fourth citybizlist As the environment becomes favourable again for distressed investors how is the market cycle developing and how big is the distressed opportunity likely to be? One of the best substacks out there for credit & rx folks. It filed this am in New York. For junior folks. Highlights of our extensive coverage and analysis of the largest stressed and distressed debt, loans, funds, companies and the distressed debt market across the Americas, EMEA and Asia. billions debt breakneck shaky Is it time to step up the regulation of private credit? bankruptcy creditors lenders More significantly, five real estate developers Longfor Group,Country Garden Holdings,CIFI Holdings,Seazen Groupand privately ownedMidea Real Estate Holding are now widely viewed by the market as golden or chosen, after aMay 27 virtual roadshowhosted by the Shanghai Stock Exchange revealed they had been uniquely selected to issue new onshore bonds supported by credit protection instruments from underwriters, including credit default swaps and credit risk mitigation warrants. But the impact of the pandemic has increased demand for private capital leading to more new fund launches over the last 12 months. Its the best take on bankruptcy and disruption out there. Fuelled by strong appetite from investors, the asset class is now a widely accepted part of the strategic allocation for institutional portfolios. involving debt bankruptcy These of course are pre-Covid-19 numbers. 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. New York Magazines Intelligencer noted us here. So, to exploit a couple of sports commentator platitudes in order to make a prediction, the game is finely balanced and could go either way. 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.
Our Members/readers a highly targeted group of investors, lawyers, investment bankers, consultants, C-suiters, board-of-director-types, and others trying to keep up with rapid change and the disruption that comes with it use our unique news and insights to source investment ideas, identify and pitch new deals, develop business, advise clients, and more. To receive occasional free content, you don't need to do anything other than subscribe. Our intelligence, reporting and analysis also includes information on distressed trading and investing written specifically for investment managers, investment bankers, legal professionals and corporate professionals. The high-yield market had a limited reopening, with eight deals pricing across a variety of sectors including midstream and building supplies. Membership gets you: Just in thinking of (reasonably priced) premium services that are no-brainers for me: if youre into. The Petition is my new favorite markets newsletter. But the path of reopening is fraught with uncertainty, both from the implementation of the recovery policies and from the ever-changing infection rates. nreionline In the Americas, stocks rose as market participants straggled back from the long holiday weekend and distressed investors focused increasingly on companies in the auto sector, which is bearing the brunt of component shortages and wage/commodity inflation. 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. Tired of being left out. Over the weekend, one of our staff members scored a victorious escape from Shanghai, where over the last 2.5 months, the only times she had been out of her apartment were for mandatory Covid tests or picking up grocery deliveries. Keep up the good work, it is truly appreciated! Demand from investors for new assets is high and the industry is seizing the opportunity to drive growth. Our Members/readers a highly targeted group of investors, lawyers, investment bankers, consultants, C-suiters, board-of-director-types, and others trying to keep up with rapid change and the disruption that comes with it use our unique news and insights to source investment ideas, identify and pitch new deals, develop business, advise clients, and more. How worried should investors be about transparency in this market? Fireside Chat: Has private debt come of age in Asia? 1/ Ten days before he reports to federal prison, we spoke with Daniel Kamensky about his youth, his career, Neiman Marcus and more. Official statistics show the impact of the monthslong lockdown on Shanghais economy: In April, industrial production was down 61.5% year over year, exports from industrial enterprises down 57.3%, infrastructure investment down 21.4%, industrial investment down 17.7%, and real estate development investment down 10%. I do love your coverage and I am getting the firm signed up next week. In addition to Purdue Pharma, we discuss: LOVE the coverage on @onepeloton in today's @petition mid-week. . harriman
EU Commission website. https://t.co/BhW2HBl8gM https://t.co/E6bb3nuJzy. After reading us, youre friends, colleagues and clients will be like: We send two newsletters a week one on Sunday and another on Wednesday. makes its thousands of Members smarter about disruptive trends and distressed debt. zunahme wahrscheinlich provides analysis, commentary and curated links about financial markets, distressed investing, restructuring and bankruptcy. Flights out of Shanghai have also been canceled. On public holidays, hundreds of thousands thronged the storied Bund, where in dusk buildings and the Oriental Pearl television tower across the river were illuminated to light up Shanghais skyline. Private debt has emerged as the new frontier for private and institutional investors on the hunt for yield. And Turnarounds & Workouts listed us among theTop Internet Bankruptcy Resources three years running. If you are using a personal email please tell us about your interest in the "Notes" box. Globally, the private credit market continues to experience strong growth. During the summit, we will discuss debt restructuring, leveraged finance, financial restructuring and many other topics. because they're a must-read in the world of bankruptcy and distressed debt. The "Weil Bankruptcy Blog Index," CMBS and how Nine West is the Gift that Keeps on Giving https://t.co/ASXHl6tFds, If you're at all interested in restructuring / distressed investing, petition is a great newsletter. Indias slowing IPO market is creating direct lending opportunities, as companies with stalled listings face a need for growth capital. optimising Here is Part I of the interview (part II coming on Sunday). On June 9, we will host a webinar discussing Shanghais reopening and implications for the real estate sector. For any suggestions please email us at questions@reorg.com. Specifically, the July 9 motion discloses that the whereabouts of TACs founders, Zhu Su and Kyle Livingstone Davies, are currently unknown and they have not yet begun to cooperate with the Foreign Representatives in any meaningful manner.. The impact reaches far beyond Shanghai. Our primary product is an a$$-kicking email briefing sent to Members every Sunday. distressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. But there are extraordinary circumstances. 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. Market participants are closely monitoring credits such as Envision Healthcare and Incora for clues on whether legal challenges brought by lenders left out of priming recapitalizations can succeed. Doesn't surprise me, sadly also makes me even more bearish about all these rx-ed PE deals blowing up as the cycle turns exchanges debt climb crisis Their writing is the kind of IP I'd move to an unrestricted sub in a hot minute! On May 5, the day I moderated a panel at the FTLive/Reorg conference, the Asia real estate outlook for private debt investors, out of 391 China real estate developers high-yield bonds, more than half were priced at 30 or below, according to Refinitiv data. Those voluntary departures coincided with Shanghai starting to reopen and lifting some Covid control measures, allowing certain business enterprises to resume in-person operations and people in low-risk neighborhoods to leave homes. Every Wednesday for free , Perhaps the best tidbit to come from the Evergrande fiasco courtesty of the always-briliant. debt avoid complimentary homeowners mortgage forgiveness distressed understand relief extension act released report help tens foreclosure dollars baltimore thousands tax propmodo Economist Keynote: Higher inflation and rising interest rates a threat or opportunity for alternative credit? The attraction of the strategy is that the loans themselves provide not only stable, high percentage returns in the high teens to 20% and above, but they offer downside protection as panelists again noted, in an event of default, private credit investors who have perfected security can take enforcement action, leading to quicker recoveries. It will be some time for the Bund to be crowded again. 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. If you havent already, need to subscribe to. 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. Manufacturers purchasing managers index and non-manufacturing commercial activity index were down 47.4% and 41.9%, respectively. Disruptions to industrial manufacturing may cause demises of small businesses that are vital to the supply chain. 4 5 May 2022 pile doubles debt freedoms ipfs The same regulatory crackdowns that have driven high-yield bond pricing on many real estate developers into the teens and the 20s the Three Red Lines policy and the reining in of the shadow banking sector not least among them have created an environment where capital providers or solutions providers can negotiate not just higher returns, but more importantly more downside protection through lower LTV ratios, greater collateral, additional guarantees and controls over cash flows and sources of repayment.
