Law.com Subscribers SAVE 30%
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The State of the Credit Markets: Implications for the Restructuring Community
Notwithstanding the market's recent shaky demeanor, the recovery of the credit markets from early 2009 has been nothing short of spectacular. The recovery in the secondary debt markets, which saw yields on first-lien paper decline from equity-like returns in the 20s to traditional single-digit levels, forced capital to return to the primary markets in a quest for yield. Consequently, borrowers were able to tap the new-issue market at greater volumes year to date than during all of 2009. This access to loan dollars fueled the refinancing market and even sparked leverage buyout and recapitalization activity. However, in the last couple of months, capital has begun to once again retreat from the market in the face of uncertainty in Europe and a slower than expected domestic recovery. Correspondingly, loan supply has surged as eager refinancing and buyout borrowers have flocked to a market perceived to be reopened. The impact has been a recent regression from credit recovery trends, calling into question whether the momentum from early this year can be regained.
The dynamics of the credit market, its recovery, and current state have numerous implications for workouts, restructurings, and reorganizations. With collateralized loan obligation (“CLO”)-backed funds accounting for such a substantial portion of credit in existence today, the diversity of interests and number of participants in any one facility has been greatly expanded. When considering the diversity of loan participants (CLOs, banks, hedge funds) and the fact that each might have a different cost basis in the same credit (e.g., some at par, some secondary buyers at premiums or discounts), the prospects of just reaching consensus within a single tranche of a capital structure can become daunting. The resulting outcome of such dynamics is that the role of the restructuring advisor, turnaround professional, and bankruptcy practitioner has continued to evolve in the current cycle.
Before we examine the recovery and current state of the credit market, it's important to understand how much lending (especially in the middle market) has changed in the last 15 years.
This premium content is locked for Entertainment Law & Finance subscribers only
ENJOY UNLIMITED ACCESS TO THE SINGLE SOURCE OF OBJECTIVE LEGAL ANALYSIS, PRACTICAL INSIGHTS, AND NEWS IN ENTERTAINMENT LAW.
- Stay current on the latest information, rulings, regulations, and trends
- Includes practical, must-have information on copyrights, royalties, AI, and more
- Tap into expert guidance from top entertainment lawyers and experts
Already a have an account? Sign In Now Log In Now
For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.