(Whether this three-year period directly correlates to the short-term memory of financial markets, I have yet to discover.). 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.
Every couple of years, a fresh batch of data shows how much more dry powder is available for investment through direct lending, how many more funds have been raised for credit strategies and how much deal volumes have risen.
Others slept on lawns outside the Hongqiao station, the main railway hub that is seeing 6,000 people departing every day. The lockdown has had an immediate and tangible effect on Chinese real estate companies, which constitute some of the most active credits in our coverage universe.
One critical area to watch in the real estate sector in coming months is contracted sales. first look at any new initiatives we can get off the ground (e.g., new content distribution channels, etc.). How concerned should investors be about warnings around systemic risks, market opacity, standards and illiquidity issues? Similarly, questions remain over whether onshore and offshore capital markets will fully open or remain only partially open to select issuers.
Closing remarks followed by VIP Networking Dinner. Lockdown at one of the busiest ports in China has forced shipping companies to reroute, exacerbating strains on global logistics and dealing a heavy blow to Chinas own exports. Has the time come for more regulation in this market, particularly around fund leverage and liquidity risk management?
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. Elsewhere, companies and investors started to appoint advisors for debt talk on situations including Hilding Anders, Holland & Barrett as well as Adler Group. And Turnarounds & Workouts listed us among theTop Internet Bankruptcy Resources three years running. TAC filed its chapter 15 facing a $675 million equivalent demand from crypto platform Voyager Digital and a potential asset freeze. Really enjoying @petition - great product! Impediments to audit was just one direct impact on developers.
Some slept overnight in underground parking lots hoping to be admitted into the station. 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. 
Concern about dissipation of assets has already emerged in filings related to the high-profile case of crypto hedge fund Three Arrows Capital, or TAC, late last week. This lead was , Here's a little preview of today's subscribers'-only newsletter (dropping in ~30 min). The debtors say that after early success, the amount of digital assets on the Companys platform grew faster than the Company was prepared to deploy, causing the company to make what, in hindsight, proved to be certain poor asset deployment decisions, some of which the debtors say took time to unwind and left the Company with disproportional liabilities when measured against the unprecedented market declines. Despite the companys efforts to unwind these asset deployments, unfortunately, the damage was done, the debtors say. #FOMO, @Petition is a smart and hilarious newsletter that you should totally sign up for https://t.co/rTU261acwz, This!!! 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.. Private credit dry powder in Asia was estimated at $16.2 billion in 2019, up from $6.1 billion in 2009. ThePBOCs announcementnoted, though, that the minimum mortgage rate for second home buyers was unchanged, with the countrys central bank reiterating that housing is for living in, not speculation..
Reorg experts recently conducted an analysis of chapter 11 filings.
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. Under such circumstances, predictions are best kept broad and vague. Questions or problems? On June 9, we will host a webinar discussing Shanghais reopening and implications for the real estate sector. PETITIONprovides analysis, commentary and curated links about restructuring and bankruptcy. airline threatens While still below the $29.3 billion recorded in 2019, the figure is not far off pre-pandemic volumes of 2017 and 2018, when deal values of $27.6 billion and $20 billion, respectively, were recorded, as Preqin noted. I do love your coverage and I am getting the firm signed up next week. Private debt has emerged as the new frontier for private and institutional investors on the hunt for yield. If you have any interest in distressed assets Petition is worth the $49/month or $499/year. Using Reorgs new restructuring dataset, included in Credit Cloud, the analysis reveals that since 2020, five debtors have emerged or will emerge from bankruptcy with more funded debt than they had on their petition dates. New Issue Concessions (NICs) have risen from the previous 0-5 basis points to as high as 20 basis points. My working hypothesis was that nothing has changed.
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doubles debt freedoms ipfs Petition is, I think (theyre anonymous), a one man newsletter. As the environment becomes favourable again for distressed investors how is the market cycle developing and how big is the distressed opportunity likely to be? Is it time to step up the regulation of private credit? The same regulatory crackdowns that have driven high-yield bond pricing on many real estate developers into the teens and the 20s the Three Red Lines policy and the reining in of the shadow banking sector not least among them have created an environment where capital providers or solutions providers can negotiate not just higher returns, but more importantly more downside protection through lower LTV ratios, greater collateral, additional guarantees and controls over cash flows and sources of repayment. Reoffer prices are well below par on many new issues.
take on the next phase of the SPAC market "We cant wait to see the deluge of diarrhea thats gonna hit the newswires.
But the impact of the pandemic has increased demand for private capital leading to more new fund launches over the last 12 months. This weeks newsletter is new high for quality content about capital markets. As some of you in the senior ranks go about your business and save jobs going into 2019, consider how you can save jobs for the junior women in your ranks while also letting them pursue a family. We discuss disruption, from the vantage point of the disrupted. To what extent is the potential for local currency swings an issue that indirectly impacts on private investments?
Facetious title (which made me laugh) aside, some really thoughtful points on many of the practices that have developed in bankruptcy, Independent Directors, Forum Shopping & Third-Party Releases. 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. Over the weekend, one of our staff members scored a victorious escape from Shanghai, where over the last 2.5 months, the only times she had been out of her apartment were for mandatory Covid tests or picking up grocery deliveries. We also have special rates for students with .edu email addresses. Celsius is the years ninth chapter 11 involving more than $1 billion in liabilities and the month of Julys third. Leaders Panel: How should investors balance opportunity and risk Asias private credit markets? debt downturn billions debt breakneck shaky Capital markets and bank loans areunavailable to most developers. 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. Prospect News reserves the right to reject trial requests. How can LPs navigate this complex market with its multiple regulatory frameworks and diverse political regimes? Voyager referenced claims against TAC of more than $650 million in a first day relief presentation on July 9. Panel: Is tighter regulation needed in non-bank lending? 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. Send Feedback to petition@petition11.com. The Petition is my new favorite markets newsletter. 2022 may yet turn out to be a year of two halves. 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. To what extent is alternative credits interconnectedness with the wider financial sector an issue that cant be ignored? Subscribe. 4 5 May 2022 service@prospectnews.com. SPAC performance; As some of you in the senior ranks go about your business and save jobs going into 2019, consider how you can save jobs for the junior women in your ranks while also letting them pursue a family. But foreign representatives for TAC on the same day sought emergency relief in connection with the chapter 15, pointing to a lack of cooperation from TACs founders and warning that absent provisional relief there is an actual and imminent risk that the Debtors assets may be transferred or otherwise disposed of by parties other than the court appointed Foreign Representatives to the detriment of the Debtor, its creditors, and all other interested parties.. Crypto has always been volatile, even before an extended run-up fueled by a search for returns in a low interest-rate environment and legions of get-rich-quick day traders locked in bedrooms during a global pandemic and fed on a diet of headlines touting fabulous returns. 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. The foreign representatives argue that the provisional relief sought through the motion which includes authority to serve discovery on the founders and others who may have information regarding the debtors assets or affairs would mitigate the risk of transfers or disposals of the debtors assets by parties other than the foreign representatives and authorize discovery narrowly targeted at obtaining fundamental information about the debtors assets.
Our primary product is an a$$-kicking email briefing sent to Members every Sunday. Economist Keynote: Higher inflation and rising interest rates a threat or opportunity for alternative credit? debt distressed schroders strikes generation deal
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. Sadly, the deeply cynical editor may have been, if not wholly, at least partly right.
For junior folks. The suspicion is that chasing down crypto assets might ultimately lead to an encrypted USB stick in North Korea. Its easy to argue that little visible progress has been made in offshore restructuring of Chinese real estate bonds in the first half of 2022, but regulatory loosening has been overshadowed by Covid lockdowns and the countrys economic slowdown. It will likely be months before easing measures have a material impact on the market.
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Curated financial news, analysis and commentary with an emphasis on distressed investing, restructuring and bankruptcy. But have recent events in Chinas real estate market altered that picture? That's right, pizza. How does this shadow banking market compare to other private asset classes in terms of returns and ease of access? https://t.co/IGa65NyXOx, good read -'That is to say, the parties involved thought that the business was worth more -and therefore covered - the $675mm of sr secured notes. The truth is that the direct lending market was well established in Asia and populated with funds long before I stumbled upon it.