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Moody’s Talks – Behind the Bonds
Liquidity tightens for leveraged finance market, raising corporate default risk
The leveraged finance market – leveraged loans and high-yield bonds – has expanded considerably in recent years and now represents around $4 trillion in outstanding debt worldwide. In the first segment of this podcast, we look at how the tide of liquidity that helped the market grow so much is turning now and what tighter, pricier credit means for speculative-grade companies. Then, at 8:45 minutes, we examine the role of private equity firms in this market and the risks for companies they own.
Guests: Sandra Veseli, Managing Director; Annalisa Di Chiara, Senior Vice President; Chris Padgett, Associate Managing Director; Evan Friedman, Senior Vice President/Manager, all of Moody’s Investors Service Corporate Finance Group.
Host: Jeff Pruzan, Vice President – Senior Research Writer, Moody’s Investors Service.
To read more on this topic, visit Moodys.com. (Some content available only to registered users or subscribers.)
- Global leveraged finance – Cross Region: Evaporating issuance will erode liquidity cushions, igniting defaults
- Leveraged Finance – North America and EMEA: Private equity has more options to preserve returns, most at creditors' expense
- As global liquidity tide goes out, risks are rising for leveraged companies
