* Via the Financial Times, Steve Miller from Standard & Poors asks if the recent loan & bond rally was a fluke or will continue. April, May and June alone account for 75 percent of the new issuances for this year. (That’s my figure, not Miller’s.) According to Miller, defaults have slowed too. But for LBOs, I’ve gotten the sense from lenders that the market for high yield bonds is going to be dead for awhile.
Then again, Alltel/Verizon shows that the appetite for investment grade corporate bonds is there. (Or at least their underwriters seem to think so. We’ll have to see how the bonds perform when they come to market.)
* In yesterday’s column I noted that Epicurean Dealmaker thinks the media is way too sunny on its M&A outlook. Well, today The Washington Post argues that we (meaning Americans) think things are much, much worse than they really are. Granted, the WaPo story refers to the economy at whole and Epicurean Dealmaker focuses on M&A, but a curious disagreement on the media’s influence. “Some analysts attribute Americans’ negative views on the economy to media coverage, which tends to play bad news more prominently than good news,” WaPo reports. I like Barry Ritholtz’s take on it.
* Not helping private equity’s good name, another one bites the dust. Quite a different tune from Apollo managing partner Josh Harris earlier this year, when he and The Blackstone Group’s COO Tony James agreed that high-profile reneges damage private equity’s image at a conference. This was when Apollo’s slate was clean and Blackstone was backing out of Alliance Data.