Demand in the Syndicated Bank Debt Primary Market continues to be robust, with many of the higher-quality deals trading up shortly after allocation.
Impending market dynamics are creating attractive prospects for ethylene producing companies. The cost of ethane, a feedstock in ethylene production, is projected to decrease by as much as 33% by Q1 2013 due to oversupply of natural gas. In this oversupply scenario, both margins and profits would increase significantly for U.S. based ethylene producing companies.
The oversupply of natural gas within the United States has led to a large price discrepancy. This has created an opportunity for US companies to export Liquid Natural Gas (LNG) globally.
The liquidity and aftermarket performance of the high yield market continues to be very strong. Larger capitalization new issues continue to perform well.
Introduced as a sub-section (Section 619) of the Dodd-Frank Act which was enacted on July 21, 2010, The Volcker Rule prohibits any banking entity from engaging in proprietary trading or from acquiring or retaining an ownership interest in, sponsoring, or having certain relationships with a hedge fund or private equity fund (“covered fund”), which is subject to certain exemptions.
The unlocking of hydro carbons in unconventional shale plays, starting with the pioneering of the development of the barnett shale by Devon Energy Corp. (NYSE: DVN), has resulted in a nation-wide boom in High-Yield issuance to fund quality unconventional resource plays.