Having issued in excess of €50bn of debt CVC has a 33 year market presence that provides valuable research and superior access to assets

Having issued in excess of €50bn of debt CVC has a 33 year market presence that provides valuable research and superior access to assets

Having issued in excess of €50bn of debt CVC has a 33 year market presence that provides valuable research and superior access to assets

Having issued in excess of €50bn of debt CVC has a 33 year market presence that provides valuable research and superior access to assets

Having issued in excess of €50bn of debt CVC has a 33 year market presence that provides valuable research and superior access to assets

Having issued in excess of €50bn of debt CVC has a 33 year market presence that provides valuable research and superior access to assets

Our Industry

SUB-INVESTMENT GRADE DEBT CAPITAL MARKETS

Leveraged Loans

Leveraged Loans are corporate bank loans of sub-investment grade issuers are issued by public and private corporates including private equity portfolio companies. These loans are generally senior secured obligations and bear floating rate interest, typically with maintenance covenants and comprehensive documentation.

US Leveraged Loan Market Size

($ Billions)

US Market SizeSource: Credit Suisse, December 2016. Measured by proportion of institutional tranche loans as a proportion of the total market. Includes $U.S.-denominated non-investment grade bank debt: institutional facilities plus CS's estimate of TLAs and bank-held facilities outstanding.

 

Western European Leveraged Loan Market Size

($ Billions)

Western Europe Market SizeSource: Credit Suisse, December 2016. Measured by proportion of institutional tranche loans as a proportion of the total market. Includes non-investment grade bank debt: institutional facilities plus CS's estimate of TLAs and bank-held facilities outstanding of issuers with assets located in or revenues derived from Western Europe, or loan denominated in a Western European currency.

European Mezzanine Loans

European Mezzanine Loans are a hybrid floating-rate loan product filling the funding gap between senior secured debt and equity. Typically a second secured instrument sharing collateral security with senior secured lenders, albeit in a junior position.

Mezzanine is a tailored product where return comprises a combination of cash-pay coupon, rolled-up interest (payment-in-kind, 'PIK') and soft call protection. There may also be an equity interest or instrument in the underlying company.

High-yield Bonds

High-yield Bonds are sub-investment grade bonds and can be either secured (ranking alongside secured senior debt) or in unsecured form where they rank behind the senior secured debt. They can be issued on both a floating rate or on a fixed coupon basis and carry incurrence covenants and generally less restrictive documentation.

Secondary pricing and market sentiment is more correlated to the bond and equity capital markets than leveraged loans and mezzanine, and requires strong analysis on both company and sector fundamentals, as well as recovery analysis and in-depth knowledge of insolvency regimes.