Fireside Chat: Has private debt come of age in Asia? 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. According to the declaration, this resulted in the company holding an uncollateralized claim against its lender in the amount of about $509 million after setting off its own loan obligations. Have events in China impacted other regional real estate markets? 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. 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. High-yield bonds have been largely shut out of the market in Asia this year following the collapse of Chinas real estate market. Prospect News reserves the right to reject trial requests. content including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. 1/ Ten days before he reports to federal prison, we spoke with Daniel Kamensky about his youth, his career, Neiman Marcus and more. We discuss disruption, from the vantage point of the disrupted. How is the overall market evolving and how do yields compare with the other debt investment vehicles in the sector? Policies: Curation, Terms of Use, Privacy Policy & Disclaimer. In China, some real estate companies face a more favorable policy environment as underwriters are providing credit enhancement measures for new bond issues by developers under the directives from regulators to support healthier issuers return to the capital market. Tired of being left out. Reorgs editorial leadership has selected the following list of the most compelling and topical situations and distressed activity across our global coverage universe. 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. To what extent has it matured to meet the risk and return profile of an increasingly sophisticated pool of global investors? By many accounts including the Bank of England the market capitalization of crypto assets globally reached the $3 trillion mark some time in late 2021, but the sector has since shed over $2 trillion of that value. The TAC and Voyager cases will be closely watched for guidance on the process of restructuring and discovery within an asset class which, lets be honest, gained its initial popularity among global crime syndicates because of its ability to completely avoid regulatory oversight. 
Private credit is booming with estimates suggesting the market is now worth more than US$1 trillion. 
Service sectors were down 6.1%, and retail down 11.1%. In addition, the debtors face other unanticipated losses, including a private lenders inability to return the companys collateral when Celsius attempted to repay a loan in July 2021. To what extent will current low interest rates affect returns? Membership gets you: access to community features including comments and ask us anything sessions; and. 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 the best take on bankruptcy and disruption out there. service@prospectnews.com. 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. Bravo for the fab journalism, PETITION. 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.
The proliferation of cov-lite deals over the last decade, during which time record volumes of leveraged loans and high-yield bonds were brought to market, combined with an expected increase in default rate, has brought an increased focus on the potential for priming transactions in distressed credits. PETITION is a digital media company focused on disruption from the vantage point of the disrupted. (Whether this three-year period directly correlates to the short-term memory of financial markets, I have yet to discover.). Ltd., declarations accompanying the chapter 15 filing show. Bear with me.). 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. And if the fate of the five golden real estate developers seems assured, sources see high beta names likePowerlong Real Estate HoldingsandAgile Group Holdingsas likely candidates to hit a refinancing wall within the next month or two. billions debt breakneck shaky Reorg experts recently conducted an analysis of chapter 11 filings. pile iHeart @petition, a great new newsletter for people interested in distressed to lien on for an Ultra fun read every Sunday night. 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. An absolute pleasure. If you are a restructuring professional who isn't following. 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 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. One of the best substacks out there for credit & rx folks. Weekly highlights from our global intel and expert analysis. Voyager itself filed a chapter 11 petition late in the day on July 5, seeking relief to address a short-term run on the bank due to the downturn in the cryptocurrency industry generally and the default of a significant loan made to a third party.. I appreciated their thoughtful, hopeful take on the possibility of more journalists running their own show via paid newsletters. Look up new deal information and issuer news. The labor exodus from Shanghai is reminiscent of the elite departures from Hong Kong over the past year, although the more recent emigration is still at its early days with no clear patterns yet. Li effectively signaled that Chinas targeted GDP growth rate of around 5.5% for 2022 might not be obtained. Mall owner Pennsylvania REIT and senior living operator Buckingham obtained concessions from lenders upon exit, including extended maturities, in an effort to carry the companies through the downcycle. Learn more: The two are not and should not be mutually exclusive. @IWIRC https://t.co/n273cESoeP. 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. Their writing is the kind of IP I'd move to an unrestricted sub in a hot minute!
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. Their writing is the kind of IP I'd move to an unrestricted sub in a hot minute! We accommodate group subscriptions. 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. To request trial access to Reorg for you and your team,click here. first look at any new initiatives we can get off the ground (e.g., new content distribution channels, etc.). Three of these companies have securities trading at stressed levels, with over 10% yields. In the Americas, distressed activity is gaining momentum, with an increasing number of companies looking to reset their capital structures amid rising inflation, near-record fuel and commodity prices and ongoing supply chain constraints resulting from the war in Ukraine and Chinas Covid-19 lockdowns. 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? Doesn't surprise me, sadly also makes me even more bearish about all these rx-ed PE deals blowing up as the cycle turns is an excellent way to follow the industry.
Economist Keynote: Higher inflation and rising interest rates a threat or opportunity for alternative credit? French chilled dough and pancake maker Cerelia is seeking an amendment to be able to raise an 80 million loan amid rocketing input costs.
Mallinckrodt second lien notes are indicated with a 12% yield and Buckingham Senior Livings 2021B notes are indicated 42.3/43. Every Wednesday for free , Perhaps the best tidbit to come from the Evergrande fiasco courtesty of the always-briliant. To what extent are asset owners adapting their approach, with potential participation in co-investments and secondary markets? Special categories for tenders and market commentary.
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. Stat. In addition to Purdue Pharma, we discuss: 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. Reoffer prices are well below par on many new issues. 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. , a great new newsletter for people interested in distressed to lien on for an Ultra fun read every Sunday night. I do love your coverage and I am getting the firm signed up next week. What is the outlook for returns in direct lending, fund of funds, distressed debt, special situation funds, and mezzanine finance? To receiveregularcontent including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. Really enjoying @petition - great product! Yet, despite ample capital, caution remains a watchword as the global credit cycle turns and the pandemic continues to influence the prospects for business and finance. 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. What impact does the prospect of rising interest rates and higher inflation have on the outlook for borrowers of private credit and generally credit quality? 2022 may yet turn out to be a year of two halves. sequel khokhlov oleg https://t.co/XYx5CSa9Ko. 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. $IO; Private credit is booming with estimates suggesting the market is now worth more than US$1 trillion. Manufacturers purchasing managers index and non-manufacturing commercial activity index were down 47.4% and 41.9%, respectively.
maverick debt distressed fund its closes 75m fourth citybizlist Everything we have ever published is here, indexed by company name. PETITIONmakes its thousands of Members smarter about disruptive trends and distressed debt.
The truth is that the direct lending market was well established in Asia and populated with funds long before I stumbled upon it. Compared with tens of thousands who are trying to leave Shanghai, she is among the lucky ones. Petition is, I think (theyre anonymous), a one man newsletter. Keep up the good work, it is truly appreciated! 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.
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Asia primary bond issuance has fallen off a cliff this year, and the regions syndicated loan markets just posted their worst first quarter volumes since 2012 in the aftermath of the GFC. The video clips she shot on her phone while riding on the back of a delivery guys motorcycle en route to the train station showed deserted streets, clean but empty. 2021 was a bumper year for private credit, with the market size growing to almost US$1 trillion. yuan thomas Robert Smith, Capital Markets Correspondent, Financial Times. 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. 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. To receive occasional free content, you don't need to do anything other than subscribe. Fortunehighlighted us inThe Ultimate Guide to the Best Business Newsletters.Buzzfeeddiscussed ushere. But while that regulatory loosening is positive for the sector, the impact of mass lockdowns on Chinas economy is very clear, and clearly negative for the sector. Do the benefits outweigh the risks of this dynamic new asset class? #FOMO, @Petition is a smart and hilarious newsletter that you should totally sign up for https://t.co/rTU261acwz, This!!! Ultimate outcomescannot be predictedwith precision. Closing remarks followed by VIP Networking Dinner. 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.
Talen Energys chapter 11 proceedings continued, with Talen Montana filing an adversary proceeding to avoid the transfer of certain asset sale proceeds to former parent PPL Corp. and Talen Energy obtaining the support of 71% of unsecured noteholders for its RSA. Reorg has not been able to secure pricing information for the other two companies. https://t.co/q1A3M5OHgj. 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. It filed this am in New York. Bravo for the fab journalism, PETITION. The impact of Chinas Three Red Lines policy and China Evergrandes slide towards what could be a restructuring or a dismantling cannot be underestimated. The company says its stabilization and restructuring pursuits would allow Celsius to emerge from chapter 11 positioned for success in the cryptocurrency industry. Celsius adds that as a result of the companys asset-preservation strategies, it holds approximately $4.3 billion in assets and $780 million in non-user liabilities as of the petition date. How can market players collaborate with policy makers to shape a regime with protects investors and the wider economy, whilst allowing alternative credit to evolve? The company was formed in 2012 under BVI law, states the declaration, and is wholly owned by Singaporean corporate parent Three Arrows Capital Pte. 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. I get excited everytime I see an email from you guys in my inbox- love the content. Each morning the Prospect News Distressed Debt Daily will be waiting in your inbox when you arrive at work. Please. After a four-hour train ride, she arrived at a city in central China where shes from originally.
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. bankruptcy creditors lenders Earlier in the year, various regional citieslowered down payment ratiosfor first-time buyers, along with providing support through subsidies. 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. PETITIONmakes its thousands of Members smarter about disruptive trends and distressed debt. Capital markets and bank loans areunavailable to most developers. Sadly, the deeply cynical editor may have been, if not wholly, at least partly right. Chemical manufacturer TPC Group filed for chapter 11, and Service King entered into an agreement that will provide as much as $200 million in new capital. 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!!! Questions or problems? On June 9, we will host a webinar discussing Shanghais reopening and implications for the real estate sector. Extremely fun and very informative, For more content about restructuring, bankruptcy, distressed investing and more, check it: . Tired of being left out. How important is credit quality as competition for deals intensifies? During the summit, we will discuss debt restructuring, leveraged finance, financial restructuring and many other topics. bankruptcy makes its thousands of Members smarter about disruptive trends and distressed debt. take on the next phase of the SPAC market "We cant wait to see the deluge of diarrhea thats gonna hit the newswires. To receive regular content including our more robust a$$-kicking Members-only Sunday briefing you must become a Member. ", SPACs, CarbonLite Holdings and Another Awesome NOA. From Reorg Asias Managing Editors Distressed Activity Gains Momentum in US, Debt Talks Develop in Europe as Primary Markets Hiccup; Underwriters Offer Credit Enhancement for Chinese Developers New Bond Issues, Indias Stalling IPO Market Generates Direct Lending Opportunities. agf awards magazine congratulate winners celebration third annual making would africa exchanges debt climb crisis A widely circulated documentary, produced by the state-owned Shanghai Daily newspaper, shows people who walked for hours or rode bicycles to train stations as taxis or car rides are either unavailable or exorbitantly expensive. involving debt Demand from global investors and local borrowers is pushing private debt to new heights across Asia. A rate cut in May from the Peoples Bank of China to thefive-year Loan Prime Ratefor new home buyers, from 4.6% to 4.45%, followed an April collapse in mortgage lending, with new mortgages down RMB 60.5 billion ($8.95 billion) for the month, and came after Li Keqiangs call for stabilization. Join below today. a further full lockdown was put in place over the past weekend.
Bank Loans - CLOs - Convertibles - Distressed Debt - Emerging Markets. Foreign representatives for TAC originally filed a chapter 15 petition in New York on July 1. What are the most effective investment opportunities in this market, from direct lending to mezzanine and distressed debt? not holding back - today's take on AMC is The causes of the collapse in valuations are well documented and include exposure of vulnerabilities like liquidity mismatches leading to run dynamics and fire sales, and leveraged positions being unwound and amplifying price falls, according to the Bank of England. 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. LOVE the coverage on @onepeloton in today's @petition mid-week. . 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. As capital continues to move into this space and dry power increases, where are the pockets of opportunity opening up? As in the Americas, companies in Europe are continuing to feel the strain from supply-chain disruptions and inflationary costs. subscription and you should too - this is the deepest and most insightful (and funniest) coverage of complex workouts and bankruptcies out there today. How cautious should investors be about entering this market, given the ongoing macroeconomic uncertainty? However, with capital continuing to move into this space, dry power is increasing as investments with an attractive risk-return ratio are becoming harder to find. 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.
PETITIONprovides analysis, commentary and curated links about restructuring and bankruptcy. 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. We accommodate group subscriptions. 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. The impact reaches far beyond Shanghai. This is amazing they do stories like this. Curated financial news, analysis and commentary with an emphasis on distressed investing, restructuring and bankruptcy. Occasionally well surprise our Members with additional special content. After reading us, youre friends, colleagues and clients will be like: We send two newsletters a week one on Sunday and another on Wednesday. If you havent already, need to subscribe to. distressed restructuring,bankruptcy analysis, and the leveraged loan market in 2022 and beyond. Email us for details: petition@petition11.com. pic.twitter.com/w28vtgErD1. 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. harriman Celsius is the years ninth chapter 11 involving more than $1 billion in liabilities and the month of Julys third. Its like Stratechery meets the skimm for people who care more about covenants than the cloud and Kardashians.
