John Atkins

Jan 24, 2024 | pitchbook.com | John Atkins |Mairin Burns

Motivated high-yield issuers drove more than $15 billion of new-issue supply to the finish line from Jan. 1-19, for a 31% increase over the starting pace last year, according to LCD. And, reinforced by an acceleration in pricing pace from a slow start this year, issuance patterns appear to be normalizing, after last year’s highly unusual mix. Unsecured vs. Secured Of the eight new-issue tranches marketed last week in the high-yield primary market, five were senior unsecured offerings.

Dec 21, 2023 | pitchbook.com | John Atkins

Steady policy from the Fed on Nov. 1 — and more explicitly dovish signals emanating from the December FOMC event — pacified the credit markets after a turbulent October, sparking the most consequential rally for the markets since the start of the Fed’s rate-tightening cycle in March 2022. Positive signalsSumming up the constructive changes in market conditions during the quarter:1.

Dec 19, 2023 | pitchbook.com | John Atkins |Jakema Lewis

As rates recede and as participants embed soft-landing scenarios into their 2024 outlooks, the focus for the year ahead will shift to the impending maturity wall, leading market participants to project a second straight annual increase in issuance volume from 2022’s threadbare output. Better funding conditions should allow more issuers to step from the sidelines, where many firmly planted themselves through the Fed’s rate-tightening cycle to sidestep rate volatility and towering absolute costs.

Dec 8, 2023 | pitchbook.com | John Atkins |Jakema Lewis

A powerful rally for fixed-rate bonds post the Nov. 1 FOMC meeting produced the best gains for high-yield in 16 months, while sparking an issuance revival that has extended into December. November high-yield issuance swelled to $19.4 billion, besting the $9.5 billion priced in October and the $9.2 billion in November 2022, while marking the fourth largest monthly total year-to-date, according to LCD. Total leveraged finance volume for Nov.1-Nov.

Nov 21, 2023 | pitchbook.com | John Atkins

For leveraged loan issuers, any goodwill sparked by another quarter of earnings growth — and resulting dead-steady leverage progressions — was doused by the latest rapid deterioration in debt coverage metrics, as interest rates rose to new long-term heights. Glaringly, the Fed’s bid to slow the economy, without creating a financial accident, has left issuers operating with the thinnest coverage of interest expense since the early days of the pandemic, according to LCD.