A Debt-Market Tinder Box Is Catching Fire
Tinder Box
As key measures of credit risk surge, a debt-market tinder box is catching fire.
A gauge of perceived risk in the US corporate credit markets on Monday spiked the most since Silicon Valley Bank collapsed. In Europe, too, credit default swap indexes flared.
A handful of corporate borrowers in the US backed down from loan sales amid the volatility and plenty of borrowers saw their debt trade lower.
* Private Credit Fund Burned by Risky Bets Is Bleeding Cash
* How Risky Is Private Credit? Analysts Piece Together Clues
* Del Monte Foods kicked off a process to raise fresh capital by moving assets into a different subsidiary. The California-based canned food company needs more money as it faces earnings pressure.
* SeaWorld Parks & Entertainment postponed its planned refinancing of a $1.55 billion term loan amid global market volatility, one of a handful of borrowers to do so.
* Apax Partners-backed Tosca Services is holding discussions with some creditors for a new loan that would give the company a cash boost.
* Bank of Montreal sold about £300 million of the UK utility’s senior debt at an almost 30% discount on Friday, report Laura Benitez, Lucca de Paoli and Giulia Morpurgo.
* No new loan sales launched Monday and a number of issuers paused deals that were slated to price later this week. In the secondary market, prices for risky loans fell to the lowest levels since 2023, according to an index that tracks the prices.
Funds that invest in leveraged loans are on track to see their biggest weekly outflows since March 2023, according to JPMorgan data.
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