Reorg Blog

Interest rates remain a critical point of concern for global investors as distressed activity accelerates across North America, Europe and Asia. In North America, 32 debtors have filed for chapter 11 thus far in August, heavily represented by real estate names as commercial property owners wrestle with increased interest costs for floating-rate debt. While market participants are encouraged by benign consumer and producer price data, stronger-than-expected retail sales last week and Federal Reserve minutes on Wednesday highlighting “upside risks to inflation,” many now expect that a fed funds rate of over 5% will likely endure.  In the wake of the tragic Maui...

Chinese regulators take further steps to cut down payments for home buyers and encourage banks to lower interest rates on existing mortgages, according to joint statements issued by the People’s Bank of China and National Administration of Financial Regulation on Thursday, Aug. 31. The minimum down payment will be uniformly reduced to no less than 20% for first home purchases and no less than 30% for second home purchases. The lower limit of mortgage interest rate for second home purchase had been adjusted to the level of related LPR+20 bps while the lower limit of mortgage interest rate for first...

An Overview of the Sustainability-Linked Bond Market Following the issuance of the first European sustainability-linked high-yield bond by Paris-headquartered aluminum maker Constellium in 2021, the European high-yield SLB market has grown considerably. New issuance in the first half of 2023 was €4.2 billion, nearly double the €2.8 billion issued in the first half of 2022. While it is tempting to attribute this increase to a heightened awareness of sustainability among issuers and investors, it needs to be considered in the context of the growth in the size of the European high-yield bond market as a whole. Within Reorg’s coverage universe,...

Download the report here The first half of 2023 exemplified volatility in the credit market, with notable activity in the banking, real estate, and healthcare sectors, sparking an increase in restructuring advisory activity and interest. The updated Reorg Advisor League Tables for the Americas utilize primary and proprietary data from Credit Cloud to analyze activities among Legal Advisors, Financial Advisors and Investment Bankers in the first six months of 2023 in order to benchmark their workload and approved fees. Legal advisors were well able to make their mark, outpacing restructuring activity in the whole of 2022 by several metrics. Source:...

Download the report here The first half of 2023 was rife with restructurings, warranting continued, close examination of advisor hires as well as their final fees earned. The midyear Reorg Advisor League Tables: Americas analyze Legal Advisors, Financial Advisors and Investment Bankers across: Retention analyses: The retention tables include pre- and postpetition advisors, across both debtor and nondebtor engagements, and provide a comprehenve overview of the total number of new engagements initiated by each advisor in the first half of 2023. Fee analyses: The fee league tables show total final fees approved - and therefore earned - for each advisor...

Reorg’s editorial leadership has selected the following list of the most compelling and topical situations across our global coverage universe. As part of Reorg’s global data and analytics product expansion, Fundamentals by Reorg now offers earnings transcripts of both public and private debt issuers. For further inquiries, please email questions@reorg.com. Twenty-four debtors filed for chapter 11 over the past two weeks, a list dominated by real estate names with liabilities of less than $10 million. The sector has been hard hit by rising interest rates and a sluggish recovery in occupancy as the pandemic’s “work from home” model becomes a...