[vc_row][vc_column][vc_column_text]

Healthcare Services | Fourth Quarter 2015

February 2016 – 2015 was a record-breaking year for healthcare M&A with 1,460 transactions and $563 billion of deal value, according to preliminary figures from Irving Levin Associates. Inc. Virtually every sector tracked by Irving Levin posted an increase in transaction volume. The Healthcare Services sector consisting of hospitals, physician practices, diagnostic laboratories and outpatient centers accounted for 62% of all healthcare M&A activity (903 deals), up 18% compared with the previous banner year of 2014. The Behavioral Health Care, Managed Care and Rehabilitation sectors also experienced strong growth in announced transactions during the year.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Capital Restructuring | Second Quarter 2016

August 2016 – Default rates reported by both Moody’s and S&P climbed to 5.1% and 4.3%, respectively, during the Second Quarter. According to Moody’s, defaults are expected to worsen before improving in 2017. Commodity-related sectors are still under distress, including Metals & Mining and Oil & Gas. Moody’s reports that the default rate is forecasted to finish the year as high as 6.4%.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Industrial Growth | Second Quarter 2016

August 2016 – During the second quarter, returns for the industrials sector in the equity capital markets were improved with five of the seven subsectors followed by SCA generating a positive return. The Resource Recovery & Waste Management subsector led the industry with a quarterly return of +9.6%, compared with the S&P 500 quarterly return of +1.3%. Other industry subsectors with notable positive quarterly growth include Metals +6.9% and Chemicals +1.1%.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Industrial Growth | First Quarter 2016

May 2016 – During the first quarter, returns for the industrials sector in the equity capital markets were positive across the board with all seven subsectors followed by SCA generating a positive return. The metals subsector led the industry with a quarterly return of +21.4%, compared with the S&P 500 quarterly return of +2.3%. The other subsectors of the industry with notable positive quarterly growth include Electronics & Components +19.4%, Precision Machine Products +16.1%, and Resource Recovery & Waste Management +12.9%.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Industrial Growth | Fourth Quarter 2015

February 2016 – The fourth quarter did not end well for the industrials sector as many key fundamentals reported sharp declines. Importantly, factory orders (-2.9%), orders for both durable (-5.0%) and non-durable (-0.8%) goods, and core capital goods (-4.3%) all declined due primarily to weakness in oilfield machinery as well as communications equipment. Capital spending for the quarter fell at an annual rate of 1.8%, representing the first such decline since Q3 2012. Headline swings in industrial order data are not unusual, but many of the recent details here point to…

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Capital Restructuring | First Quarter 2016

May 2016 – Moody’s and S&P are expecting year-end default rates to continue to climb from current levels. According to Moody’s, defaults during 2016 will likely continue to be concentrated in a select number of industries, led by Metals & Mining and Oil & Gas, and is forecasted to reach 6.2% by year end. S&P reported a 3.8% default rate at the end of Q1 2016, slightly lower than their 2016 year-end forecast of 3.9% and then climbing to 5.3% by the end of Q1 2017, as low commodities prices will continue to plague debt issuers from those sectors.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Capital Restructuring | Fourth Quarter 2015

February 2016 – Moody’s default rate finished 2015 at 3.2%, while the S&P default rate rose to 2.8%, its highest level since 2013. According to Moody’s, defaults in 2016 will likely be concentrated in a select number of industries. There were 75 Chapter 11 bankruptcy filings in 2015 that involved debt of $100 million or more. The number of large Chapter 11 cases in 2015 was at its highest since 2010.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Business Services | Second Quarter 2016

August 2016 – For the second quarter of 2016, the SCA Business Services Index decreased by 1.5% compared to an increase of 1.3% for the S&P 500. The Business Services sector’s overall underperformance relative to the broader market was driven by concerns over slowing economic growth, particularly in the areas of staffing and employment related services. This continues a year-long trend of month-over-month deceleration in temporary staffing growth and a decline in the temporary staffing penetration rate.
(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Business Services | First Quarter 2016

May 2016 – For the first quarter of 2016, the SCA Business Services Index increased by 6.4% compared to an increase of 2.3% for the S&P 500. While the Business Services Index overall outperformed the broader market, performance among the sectors varied considerably. Marketing Services had a strong quarter driven by a forecast that U.S. media ad spending, will increase by over 15% in 2016. On the other side, Staffing and HR Services underperformed the markets, driven by broad concerns about slowing growth and month-over-month declines in temporary staffing and the temporary staffing penetration rate.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Business Services | Fourth Quarter 2015

February 2016 – For the fourth quarter, the SCA Business Services Index increased by 3.6% compared to an increase of 6.2% for the S&P 500. While most Business Services sub-sectors underperformed the S&P 500, only the Specialty Consulting Index (decline by 3.6%) declined for the quarter as it reflected growing concerns over the outlook for energy, healthcare and litigation services, all of which have historically been heavy users of specialty consulting services.

After a substantial number of new private equity investments into the Business Services sector during the first three quarters 2015, the fourth quarter saw a wave of strategic consolidation. In particular, acquisitions of data-based companies and information services businesses remained especially active while traditional HR and Outsourcing sectors experienced reduced activity.

Notable merger and acquisition transactions during the quarter included:
(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Business Services | Third Quarter 2015

November 2015 – While the SCA Business Services Index outperformed the broader market indices in Q3 2015, it also experienced the overall decline felt by the broader market. For the quarter, the SCA Business Services Index declined by 3.7% compared to a decrease of 7.6% for the S&P 500. In fact, only the SCA Marketing Services Index
(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Capital Restructuring | Third Quarter 2015

November 2015 – Moody’s default rate finished the third quarter at 2.1%, while the S&P default rate rose to 2.5%, its highest level since 2013. According to Moody’s, increasing liquidity pressures in the oil and gas industry are likely to propel a rise in the default rate to a four-year high of 3.8% in October 2016.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Healthcare Services | Third Quarter 2015

November 2015 – Announced healthcare M&A transactions in the third quarter of 2015 totaled 379, up 10% compared with the same quarter a year ago, according to preliminary figures from Irving Levin Associates, Inc. Deal value in the third quarter of 2015 reached $198 billion, 20% more than the entire annual M&A spend in 2013 ($164 billion), largely due to two large cap transactions announced in the managed care sector totaling $91 billion (Aetna/Humana and Anthem/Cigna). Both deals are being studied carefully by the Federal Trade Commission

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Industrial Growth | Third Quarter 2015

November 2015 – The industrial sector remains in a choppy market relative to other market sectors. Key fundamentals remain broadly weak as Q3 U.S. real GDP capital spending rose at an annual rate of +2.1%, which is half the pace recorded in Q2, due primarily to: (1) declines in mining and oilfield equipment spending, (2) decreases in spending in nonresidential structures which fell at a (-4.0%) rate, and (3) soft order volumes in the trucking sector of 25.2k units vs. expected volumes in the mid-30ks. Furthermore, a strengthening of the U.S. dollar has…

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Business Services | Second Quarter 2015

August 2015 – The SCA Business Services once again outperformed the broader market indices in Q2 2015, increasing by 2.2% compared to an increase of 0.2% for the S&P 500. However, despite the sector’s overall positive performance, there was significant variability among the various subsectors. The Professional Staffing sector (+2.5%), the IT Consulting sector (+4.8%), and Specialty Consulting sector (+3.8%) all significantly outperformed the S&P 500, while several other sectors such as…

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Capital Restructuring | Second Quarter 2015

August 2015 – In this edition, we provide our perspectives on the restructuring market during the second quarter of 2015 which include: Moody’s default rate finished the second quarter at 1.9%, while the S&P default rate rose to 2.1%, the highest rate since December 2013 when it reached 2.2%. Moody’s expects the default rate to finish the year at 2.5%, while S&P is projecting 2.8% by the end of March 2016. Defaults appear concentrated, not widespread across industries. Although energy, metals, and mining comprise only 7% of leveraged loans, they represented almost half of defaults during the first half of 2015. Moody’s default-forecasting model estimates a near doubling of the 12-month probability of default in the oil & gas sector. Even if energy prices recover gradually, weaker oil & gas issuers will still be positioned for a much greater risk of default. Independent exploration and production companies should have the most trouble in the coming year, as they are typically smaller in size and more reliant on outsized capital spending to replenish their reserves.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Healthcare Services | Second Quarter 2015

July 2015 – Announced healthcare M&A transaction in the second quarter of 2015 totaled 312, down 4% compared with the same quarter a year ago, according to preliminary figures from Irving Levin Associates. Inc. Deal value in Q2 2015 reached $54.2 billion, 60% less than the Q2 2014 total of $135.8 billion, which was the largest Q2 on record. One key factor in the lower dollar volume for this year’s Q2 was the lack of billion-dollar-plus acquisitions. Q2 2015 had 10 one billion-dollar-plus transactions, totaling approximately $40.7 billion. The same quarter a year earlier had 14 deals at $1 billion or more, representing a total of $117.1 billion. The Long-term Care sector generated the highest transaction volume for the quarter with 21% of the quarter’s transactions (64 deals) with REITs announcing 14 acquisitions totaling $4.1 billion.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Industrial Growth | Second Quarter 2015

August 2015 – During much of Q2 2015, the industrial sector has shown sluggish to no growth across several indices as the ISM Manufacturing Index for July came in at 52.7 and well below consensus, and July’s PMI Manufacturing Index was in line with estimates at 53.8. Key drivers in these reports include: weak employment among manufacturers, continued contraction in exports as new export orders fell for the fifth contractionary reading in the last seven months, and backlogs dropped by 4.5 points representing the sharpest decline in three years. Despite these negative trends, there are some positive elements in the current manufacturing environment. Specifically, production was strong at 56.0 and new orders rose by 0.5 points to the strongest reading of the year, suggesting that domestic demand is improving. Positive trends in domestic demand should help alleviate, but not offset…

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Capital Restructuring | First Quarter 2015

May 2015 – In this edition, we provide our perspectives on the restructuring market during the first quarter of 2015. During the first quarter, the big news for loan defaults was Caesars’ long-anticipated bankruptcy filing. According to Moody’s and S&P, default rates finished the first quarter at 1.9% and 1.7%, respectively. Moody’s expects the default rate to rise to 2.7%, while S&P is projecting a 2.5% default rate in 2015. Sectors to continue to watch for restructuring and distress in 2015 include energy, retail, hospitals and municipalities. Oil & Gas-related loans account for just 4.8% of the S&P Index, yet a significant 39.6% of the Index’s distressed ratio, which tracks the percent of performing Index loans trading at a yield of L+1,000 or higher.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Business Services | First Quarter 2015

May 2015 – The SCA Business Services Index significantly outperformed the broader markets in Q1 2015, increasing by 10.2% compared to an increase of 0.5% for the S&P 500. While virtually all subsectors of the SCA Business Services Index outperformed the broader market, the SCA Professional Staffing sector (+14.8%), the SCA HR Services sector (+16.7%) and the SCA IT Consulting sector (+9.8%), each exhibited significant appreciation due to investor expectations for accelerating economic growth in the U.S., a tightening labor supply (particularly among skilled professionals), and increased IT spending driven by corporate demand for productivity gains.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Healthcare Services | First Quarter 2015

May 2015 – The first quarter of 2015 set a new record in terms of transaction volume, with 355 healthcare M&A transactions announced, up 25% compared with the same quarter a year ago and surpassing all other first quarters on record, according to preliminary figures from Irving Levin Associates. Inc. Deal value in Q1 2015 reached $104.9 billion, 109% greater than the Q1 2014 total of $50.1 billion. Healthcare Services represented 57% (203 deals) of the quarter’s transactions, slightly lower than the previous quarter’s 60%.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Industrial Growth | First Quarter 2015

May 2015 – Through Q1 2015, the industrial sector continues to experience weak performance across several indices, including (i) the PMI Manufacturing Index, which slipped to a new 16-month low; (ii) Industrial Production fell for the fifth straight month; (iii) Capacity Utilization, which is a measure of factory production, dropped to its lowest level in nearly 15 months; and (iv) Producer Price Index was -1.3%, representing the fourth consecutive month with a negative growth rate.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Capital Restructuring | Fourth Quarter 2014

February 2015 – Continuing a trend seen over the past few years, and unlike the bankruptcy cycles of (1) 2000-2003 and (2) 2008-2009, which were clearly dominated by certain sectors (telecom/technology and financial services, respectively), 2014’s Chapter 11 activity covered a wide range of industries including healthcare, oil & gas, retail and telecommunications. According to Moody’s and S&P, default rates finished the fourth quarter at 1.9% and 1.5%, respectively. Moody’s expects the default rate to rise to 2.8% in 2015, while S&P is projecting the U.S. corporate 12-month speculative-grade default rate to rise to 2.4% by September 30, 2015.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_column_text]

Industrial Growth | Fourth Quarter 2014

February 2015 – Consistent with results for Q3 2014, the industrial sector continues to lag broader market indices due to cyclical demand and softening global economic indicators. A review of year-end economic reports suggests some cracks in a U.S. economy that had reported a strong prior quarter. Specifically, Real GDP of +2.6%, while positive disappointed the market as many had expected +3% growth coming off the very strong +5.0% in Q3. This deceleration was predominantly led by growth in imports, drops in federal spending and slowing in nonresidential investment.

(Please continue reading by downloading the full report.)[/vc_column_text][/vc_column][/vc_row]