Were the Chinese property developer to default, it would be the high-yield market in the immediate firing line.
With high-yield bonds added, the leveraged finance market tops $3trn for the first time ever.
Increased interest in businesses services deals and appetite for ESG-linked loans were major drivers of transactions in Q2 2021.
A growing body of data shows that H1 2021 was one of the strongest periods for private debt deal activity ever seen.
Issuance has shot up in the first half of this year, underlining the importance of best practice being applied.
There is no uniform view on what should come next as the reference rate for loans, but decisions will need to be taken soon.
The private debt firm has written a giant direct loan, its first to have a margin linked to ESG targets.
The default rate has fallen to a notably low level thanks to government support, but there should be no room for complacency.
The Toronto-based manager’s fundraise comes alongside its $2.3bn purchase of Annaly Capital’s real-estate loan portfolio.
The fund, whose focus includes distressed corporate debt, blows past its $750m target.

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