Credit investors who've plowed billions of dollars into private equity-sponsored LBO debt will be hit hard when the credit cycle turns and defaults rise, Moody's Investors Service warns in a new report.
The Bank for International Settlements (BIS) sees rising debt issuance as potentially destabilizing for global markets, and points to a curious suspect, index funds. The BIS warned that borrowers may be tempted to ignore the interests of their bondholders and take on additional leverage to meet demand from index trackers, according to a report issued.
Billionaire Masayoshi Son’s plan to list his cash-cow Japanese telecom business is raising concern among observers that the company might stop guaranteeing the debt of its parent SoftBank Group Corp., worsening the quality of its credit.
A buildup of debt needs to be more closely monitored to ensure it doesn't spark the next financial crisis, according to former Bank of England Governor Mervyn King. "The areas of weakness in the current system are really focused on the amount of debt that exists, not just in the U.S. and U.K. but across the world," he said on Bloomberg Radio.
In a preemptive measure against tougher government regulation on unfair practices of large conglomerates, the family members of Korea's Hanwha Group have shed their combined 45 percent stake in IT solutions company Hanwha S&C.
San Bernardino County Employees’ Retirement Association is planning to invest $150 million in real estate, debt and infrastructure through Kayne Anderson Capital Advisors.
Four UK pension funds have committed £370 million to ICG-Longbow’s latest real estate debt fund.
Teachers’ Retirement System of Louisiana is favouring value-add strategies and debt investments as it plans to invest up to $400 million in real estate over the next 12 months. Investment consultant Hamilton Lane has identified value-add and debt investments as offering the best opportunities for Louisiana Teachers.
A large portion of capital managed by fund managers making private equity impact investments is raised from family offices and high net worth individuals (HNWIs), new research finds. Up to 37% versus only 5% of the capital managed by private debt focused fund managers came from family offices and HNWIs, according to the seventh annual Impact Investor Survey 2017.
FS Investments, a leading alternative investment manager and the largest manager of business development companies (BDCs), announced that its BDC direct lending platform committed more than <span class="xn-money">$1.4 billion</span> in senior secured loans and other debt and equity financing to middle market companies in the first quarter of 2017. The directly originated investments supported seven new portfolio companies and provided financing to several existing portfolio companies during the quarter.