Goldman's Minnis, Bantwal on Leveraged Loan Market

The video discusses the significant growth in the leveraged finance market, highlighting a 140% increase in issuance and substantial repricing activity. It explores capital flow trends, private equity's cautious approach due to high valuations, and investment opportunities in healthcare and technology. The energy sector's challenges and underperformance are analyzed, along with the prevalence of covenant-lite loans and their impact on investor risk appetite. Finally, the dynamics of the repricing market are examined, emphasizing the abundance of capital and investor decisions in a changing rate environment.

What was the percentage increase in global leveraged finance issuance year over year?

• 140%

• 100%

• 160%

• 120%

Which sector is highlighted as having interesting opportunities despite risks due to changes in Washington?

• Finance

• Energy

• Technology

• Healthcare

What is a significant trend in the energy sector according to the discussion?

• Increased leverage

• Deleveraging and liability management

• High performance compared to high yield

• Stable crude oil prices

What is the trend regarding covenant-lite loans?

• They are only used by highly levered companies

• They are only used in the energy sector

• They are becoming less common

• They have become the norm

What is the return on high yield excluding energy?

• 6%

• 8%

• 5%

• 7%

In the repricing market, what is a key factor influencing investor decisions?

• High default rates

• Rising rates as a favorable tailwind

• Lack of available credit

• Decreasing interest rates

What is a common outcome when companies seek repricing of loans?

• Investors refuse to participate

• Companies face higher interest rates

• Investors easily fill the demand

• Repricing is rarely successful