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KPMG Capital Advisory Q4 2014 Credit Markets Update

Jan 16, 2015
From the Advisory Institute and the Global Enterprise Institute

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.  
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