Cadwalader partnered with the European Leveraged Finance Association (ELFA) for a recent panel discussion on the financings of middle-market loan portfolios, current issues and the future outlook for this market segment.
Cadwalader Capital Markets associate Elena Bernal and co-panelists Samuel Murias of Citi and Meredith Reynolds of Well Fargo discussed:
- the nature of the underlying assets and how middle-market loans are different from broadly-syndicated loans comprising CLO portfolios
- where middle-market facilities fit in a range of funding tools available to funds
- what make middle-market loan portfolios an attractive investment
- how managers react to rate increases, inflation and other macroeconomic factors affecting the underlying obligors
- jurisdictional complexities, multi-currency aspects and the size of the European middle-market financings market as compared to the U.S.
- approaches to asset approvals by lenders in European middle-market facilities
- the future outlook for a potential European middle-market CLO
The event, which was hosted at Cadwalader's London office, concluded with a Q&A session and a networking reception.