Gary Rosenbaum said the return of second-lien debt to financial markets bodes well for future sponsor-backed activity, as this is a crucial part of the capital structure when banks can't underwrite first-lien debt without regulators objecting. "The bottom line is you really need availability on the second-lien debt market," Mr. Rosenbaum said. "We are seeing a pickup in activity. There are a lot of auctions percolating out there. If there's a stable source of financing and second-lien debt comes back, then I think the fourth quarter could get active and interesting." Read the full article.