Credit Market Update

Overview: Over ten years following the Global Financial Crisis (“GFC”), Silver Creek believes that European Non-Performing Loans (“NPLs”) continue to be one of the most attractive risk/reward opportunities in the global credit markets. While the volume of NPL sales has...

Overview: When there is little distress across the credit markets, the opportunity for corporate distressed investments can seem counterintuitive. Despite the recent increase in volatility in the equity markets, credit markets have remained much more stable and defaults have remained...

Overview Many investors today think that “perceived risk does not reflect actual risk” in the credit markets.  To be sure, many core sectors of the liquid and illiquid credit markets are not opportunistically priced today.  However, that does not necessarily mean...

Overview Oil prices, Brexit and the U.S. presidential election. In this mid-year private credit market update, we avoid all of these attention grabbing topics and instead provide data and analysis on less followed (although we would argue equally interesting) issues...

Overview Concerns about slowing growth in China, a sharp drop in oil prices and heightened expectations around an imminent interest rate hike by the Fed drove markets sharply lower during the third quarter. High yield markets in particular traded off...

Overview At the beginning of June the Canada Pension Plan Investment Board (“CPPIB”) won a competitive bidding process to buy GE Antares, the middle market direct lending arm of GE Capital.  The division, which has been described by competitors as...

Overview While the Goldilocks metaphor – the little girl who tasted porridge that was too hot and then too cold until finding one that was just right – is vastly overused, in the context of the European credit opportunity, it...

Overview In late October the European Central Bank (“ECB”) released the results of the Asset Quality Review (“AQR”), a widely anticipated review of the financial health of 130 of Europe’s largest banks. The headline number, as illustrated below, was an...

Overview Attention in the private credit markets remains largely focused on Europe in advance of the Asset Quality Review (“AQR”). A widely anticipated review by the European Central Bank of the financial health of 130 of Europe’s largest banks, the...

Overview Continued complacency seemed to define the second quarter of 2014, with investors seemingly willing to assume that U.S. growth prospects will remain solid and that the Federal Reserve will manage any issues appropriately.  This view was evidenced by the...