KPMG Corporate Finance LLP Capital Advisory's 4Q 2014 Credit Markets Quarterly provides a snapshot of credit market activity October through December 2014, including a general overview, trends, pricing and structures.
Key insights from the Q4 newsletter include:
- Leveraged loan volume slipped to a three-year low in the fourth quarter of 2014 as yields widened amid loan fund outflows, causing a slowdown in opportunistic and repricing activity.
- Contrary to the overall market, 2014 M&A lending had its best year since the credit crunch. Issuers tapped the market for $254 billion to fund acquisitions and LBOs in 2014, the most since 2007 when M&A loan volume reached its peak of $331 billion.
- Amid retail outflows from loan funds and ongoing restraint by banks, new-issue leveraged loans grew even more dependent on CLO funding. CLO issuance in Q4 was close to $30 billion and broke previous annual records with $124 billion in 2014.
- The Shared National Credit (SNC) program (collaboration by FDIC, OCC and Federal Reserve) released its 2014 Review findings on November 7th.