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SFN Poll Archive
Covenant-lite bond deals are
not OK. Its a bad sign to see them again.
OK if the company is not too highly levered.
Companies issuing junk bonds and leveraged loans to fund dividend deals are
digging a debt hole that could serve as their grave.
showing confidence in the future of the economy.
Is the recent drop in the stock market a sign that the second dip of the double-dip recession is upon us?
Yes, hold onto your seat belts
No, were on a long, rocky road to recovery
Will the current new issue activity in the high yield bond and leveraged loan markets continue at this pace through Labor Day?
Yes, the market is catching up after a slowdown
No, investors are getting ready to go on vacation
Will the financial reform bill signed into law by President Obama decrease the importance of rating agencies in the asset-backed bond market?
Yes
No
Maybe
Are commercial banks here to stay in the leveraged loan market?
Yes, get used to them
No, theyre fair-weather players who will flee when things get rough
If signed into law in its current form, how will the skin in the game provision of the financial reform bill under consideration by Congress impact the CLO and leveraged loan market?
It will spread the risk, ensuring a safer market
At worst it will create some confusion
At best it will create total confusion
Its a complete disaster
What was the most important development for the high yield bond and leveraged loan markets in the first half of 2010?
European debt crisis
Fed's decision to keep interest rates low
The return of LBO deals
Record junk bond issuance in March and April
What is the best way for issuers to make leveraged loans more attractive to buyers?
Higher coupons
Larger original issue discounts
Tighter covenants
Lower Libor floors
Lower leveraged multiples
When will the high yield bond market regain its previous vigor?
Before the end of June
Sometime in the third quarter
Not until Q4
Not until 2011
Banks are using bridge loans to wait out the slow bond market. What does this mean?
Good news it shows the will to get deals done and faith that the primary HY market will return.
Bad news banks will be encouraged to make more bridge loans, eventually building bridges to nowhere.
Which is the biggest threat to the U.S. debt markets?
The European debt crisis
The potential financial regulatory changes
Roller coaster equity markets
Are deals becoming too issuer-friendly?
Yes
No
Have covenant packages on high yield bonds and leveraged loans become too weak?
Yes
No
Is volatility as much of a consideration as pricing and spreads when buying credits on the secondary market?
Yes, absolutely.
No, not so much.