High Yield Industry Update: Analyzing debt exposure

Reorg’s recent high yield industry update included an analysis of companies’ exposure to floating-rate debt and near-term maturing debt, which indicates a high concentration of rising rate risk in a number of consumer and technology sectors.

Sectors identified as having higher exposure that may potentially result in higher interest costs include:

• Consumer durables and apparel
• Retailing
• Healthcare equipment and supplies
• Software and services

This analysis was developed using Credit Cloud, newest data offering for leveraged finance and restructuring. Through Credit Cloud, Reorg has analyzed details on companies’ capital structures, including debt, cash and EBITDA, and then separated companies by sector using the Global Industry Classification Standard, or GICS, to aggregate results by sector and subsector. Reorg breaks out debt by each issue, and groups debt by tranche and ranking.

To access the full list of sectors identified, as well as in-depth sector analysis, and Chapter 11 filings within these sectors, read the full industry update. And, if you’d like to learn how to use Credit Cloud to conduct you own analysis, request a demo today!