Wednesday 24 April 2019
Amundi Private Debt
2018 was again a record year for the private debt platform in term of investments activity but also with the successful development of new verticals. Q1’19 continued on the same path with a lot of opportunities and attractive investments undertaken across our funds / strategies.
However, standards for credit issuance continue to be very loose in some specific markets. Aggressive documentation features, Ebitda adjustments / addbacks, incremental loan facilities, freebies, loose covenants and the like are all of great concern.
In that context, access to a large and diversified sourcing, thorough due-diligence and high selectivity have never been more important.
Furthermore, given where we stand in the credit cycle and as uncertainty is rising as we move toward 2019 (Brexit, trade war, EU election, etc.), we prefer to invest at the top of the capital structure.
Fund dedicated to SMEs in Auvergne Rhône Alpes region
Alignment of interest with 5 regional banks, anchor investors, actively participating to the sourcing
Second closing expected mid-2019
Fund dedicated to European Senior Mortgage Loans
3 diversifying transactions already undertaken and 3 additional secured for the second closing
Second closing expected in May 19
Fund dedicated to European broadly and liquid Senior Secured Leveraged Loans
Open-ended vehicle with monthly liquidity
Granular portfolio well diversified across sector and geography
Outperformed its benchmark since inception
Our €890 million benchmark fund (DS III) dedicated to European SMEs is well underway to deliver all its objectives (risk-adjusted-return, ramp-up period, diversification, etc.)
New positions: One credit analyst and one financial controller joined the team in Q1’19
Preqin and Amundi announce the results of the 2nd annual Alternatives in Europe report
The report finds that although the macro-economic picture for Europe has been muted in the past 24 months, the alternatives industry in the region is moving from strength to strength with alternative assets hitting €1.62tn in AUM – up almost €300bn in just three years.
Amundi/IFC green bond strategy awarded by Environmental Finance
On 2 April, Amundi/IFC green bond strategy was named Initiative of the Year 2019 and Green Bond Fund of the Year.
Renewed expansion of Fed balance sheet will not be QE but will affect markets
On 30 October the Federal Reserve cut the federal funds rate for the third time this year, while hinting at a pause over the next few months. The rate cut followed the Fed’s announcement on 11 October that it will address a liquidity shortage causing volatility in the overnight loan market by buying $60 billion per month in Treasury bills until Q2 2020 and support overnight repo operations through January 2020.