Hello everyone.

I’m Dave Kucera, head of Origination and Structuring for the US Securitization Group at BMO Capital Markets.

There isn’t a business in the world that doesn’t like to boast about how much its market is growing – and those of us who work in leveraged finance markets are no different.

Of course, the market has given us plenty to talk about. Since 2001, the Institutional US Leveraged Loan market has grown by over 500 per cent … and everywhere we look, there are clues that this amazing growth will continue:

• For starters, we’ve seen record Private Equity issuance over the last several years;
• We’ve also seen a very high level of M&A Activity;
• Another clue is the appearance of more corporate credit investment groups, especially those funded through credit investment funds and collateralized loan obligations;
• The new-generation commercial finance and business development companies, who provide one-stop financing for equity, mezzanine and senior capital are another hint;
• And the final indicator that Leveraged Loans will continue to be popular is that Credit Investment Funds and CLO Managers are having no trouble finding “equity” investors who are looking for 10 to 15 per cent IRRs, relatively low volatility, and high cash returns.

As it grows, the U.S. Leveraged Finance market is also undergoing significant change. Matt Peters, Managing Director in our group, will give you some idea of some of the change we are seeing in the world.

Thanks Dave. Hi, I’m Matt Peters. I’m a Managing Director in the US Securitization Group.

It’s now a crowded marketplace. Seven years ago, banks were the primary investors, but today, institutional investors purchase over 60 per cent of leveraged loans issued.

At BMO Capital Markets US Securitization Group, we prefer to take an integrated approach to the Leveraged Loan market, as we combine our commercial finance platform with our leveraged finance and sponsor capabilities. It allows us to provide comprehensive capital-raising solutions.

Our clients include managers with capital raised from banks, commercial finance companies, business development companies, hedge funds, CLOs, and diversified asset managers. Clients come to us because they know we have the expertise, capital, and investor interest they need.

To learn more about what the U.S. Securitization Group at BMO Capital Markets can do for you in this fast-growing marketplace, just give us a call at 312-461-3893.

Thanks for listening to the podcast, everyone. We hope to hear from you soon.