50 min
Dan McMullen Talks Senior Loans, Leveraged Loans, CLOs, And More Broken Pie Chart
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- Investing
Dan McMullen Senior Managing Director and Senior Portfolio Manager in Blackstone’s Credit Liquid Credit Strategies Unit, SPDR Blackstone Senior Loan ETF (Symbol: SRLN) joins the podcast to explain what senior loans are. How senior loans compare to leveraged loans and CLOs or collateralized loan obligations. Plus, Dan explains what the risks are, how they compare to high yield bonds, and what happens in the event of bankruptcy. Later Dan gets into how loans trade and are priced plus whether they are based on SOFR, LIBOR, or something else. What types of covenants or restrictions do investors put on companies accessing these markets? What type of companies use senior loans and why this instrument versus equity or bonds. Dan McMullen also is a member of Blackstone Credit’s LCS Management, LCS US Syndicated Credit, Global Structured, and Asset Allocation investment committees.
What are senior loans?
Senior Loans versus Leveraged Loans
What are CLOs (Collateralized Loan Obligation)
What types of collateral do companies put up against loans?
Where do senior loans site on the balance sheet?
Where do ongoing interest payments sit on the income statement?
What happens if companies go bankrupt?
What is a typical recovery percentage on loans in default?
Is the industry transitioning away from Libor and to SOFR?
Effect of interest rates on existing and future issuance of senior loans
Where do senior loans sit in the capital structure
Why companies use senior loan markets
Senior loans during the worst of Covid
Prices of loans versus prices of high yield bonds
Recovery rates on loans versus high yield bonds
How loans in bankruptcy can be sold
Amortization in senior loans
Restrictions or covenants put on senior loan issuers
Mentioned in this Episode:
More on Dan McMullen and senior loans ETF https://www.ssga.com/us/en/institutional/etfs/funds/spdr-blackstone-senior-loan-etf-srln
Marcel Benjamin deconstructs High Yield Bonds and What are Zombie Companies https://podcasts.apple.com/be/podcast/marcel-benjamin-high-yield-bonds-explained-what-are/id1432836154?i=1000517760353
Derek Moore book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=tmm_hrd_swatch_0?_encoding=UTF8&qid=&sr=
Dan McMullen Senior Managing Director and Senior Portfolio Manager in Blackstone’s Credit Liquid Credit Strategies Unit, SPDR Blackstone Senior Loan ETF (Symbol: SRLN) joins the podcast to explain what senior loans are. How senior loans compare to leveraged loans and CLOs or collateralized loan obligations. Plus, Dan explains what the risks are, how they compare to high yield bonds, and what happens in the event of bankruptcy. Later Dan gets into how loans trade and are priced plus whether they are based on SOFR, LIBOR, or something else. What types of covenants or restrictions do investors put on companies accessing these markets? What type of companies use senior loans and why this instrument versus equity or bonds. Dan McMullen also is a member of Blackstone Credit’s LCS Management, LCS US Syndicated Credit, Global Structured, and Asset Allocation investment committees.
What are senior loans?
Senior Loans versus Leveraged Loans
What are CLOs (Collateralized Loan Obligation)
What types of collateral do companies put up against loans?
Where do senior loans site on the balance sheet?
Where do ongoing interest payments sit on the income statement?
What happens if companies go bankrupt?
What is a typical recovery percentage on loans in default?
Is the industry transitioning away from Libor and to SOFR?
Effect of interest rates on existing and future issuance of senior loans
Where do senior loans sit in the capital structure
Why companies use senior loan markets
Senior loans during the worst of Covid
Prices of loans versus prices of high yield bonds
Recovery rates on loans versus high yield bonds
How loans in bankruptcy can be sold
Amortization in senior loans
Restrictions or covenants put on senior loan issuers
Mentioned in this Episode:
More on Dan McMullen and senior loans ETF https://www.ssga.com/us/en/institutional/etfs/funds/spdr-blackstone-senior-loan-etf-srln
Marcel Benjamin deconstructs High Yield Bonds and What are Zombie Companies https://podcasts.apple.com/be/podcast/marcel-benjamin-high-yield-bonds-explained-what-are/id1432836154?i=1000517760353
Derek Moore book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=tmm_hrd_swatch_0?_encoding=UTF8&qid=&sr=
50 min