Debt Exporer | Loan issuance slowed in all key regions during the first nine months of 2023, but after a tough year there are signs that market conditions may be improving

Against a challenging macro-economic environment worldwide, India has proven resilient and demonstrated its huge potential for growth.

Debt Explorer | After a slow first half, the outlook for Latin American debt markets is improving as inflation cools and interest rates stabilize

Debt Explorer | Many private credit funds are steering portfolios through a downturn for the first time. Borrowers are keeping a close eye on how debt managers are reacting when company balance sheets come under pressure

The ongoing decline in NPL volumes in 2022 and pivot towards smaller disposals leave European lenders well positioned to withstand adverse economic conditions.

Declining NPL ratios have put banks in a somewhat more comfortable position than they were this time last year, but the threat of macroeconomic hardship looms over borrowers.

Total NPL volumes across Europe are down and ratios remain stable, with countries such as Italy and Greece having worked especially hard to deal with toxic assets. Even with economic growth set to slow, banks have reason to be broadly optimistic about their NPL levels.

Despite broad economic turmoil, countries across Europe have so far avoided recession. Banks have been able to catch their breath with the NPL market shrinking steadily post-pandemic. But looking forward, Europe is hardly anxiety-free.

We highlight the key UK & European M&A trends in H2 2022 and H1 2023, and provide our insights into the outlook for M&A moving forward.

UK & European Financial Services M&A: Sector trends H2 2022 | H1 2023 — Banks

Debt Explorer | High yield bond activity rallies in the US as borrowers pivot away from pricier leveraged loans, but European and Asian markets remain challenged

Debt Explorer | In debt markets characterized by tighter liquidity and cautious lenders, term loan C debt is providing borrowers with essential liquidity

Debt Explorer | Loan issuance across all major jurisdictions saw year-on-year double-digit declines during the first half of 2023, as high inflation and rising interest rates continued to weigh on loan activity

Debt Explorer | Sponsors hope increasing competition and the flexibility of Australia’s leveraged finance market will provide increasing optionality during challenging times

Debt Explorer | Private equity buyout activity has slowed in the face of macroeconomic headwinds, but public-to-private transactions have shown little sign of slowing down

Debt Explorer | Expectations of a surge in non-performing loans in Italy have failed to materialize, with the country’s banking system and economy holding firm in the face of macroeconomic volatility

Debt Explorer | Slowdowns in US IPO, high yield and syndicated loan markets have revived US convertible bond issuance as borrowers seek out cheaper debt due to rising interest rates

Debt Explorer | Few markets have been as directly impacted by the conflict in Ukraine as those in Czechia and Poland, but governments in both countries have stepped up with financial packages to shield exporters from the fallout

Debt Explorer | The fund finance ecosystem is in a period of flux as lenders and private equity funds take stock of new regulatory capital requirements and the impact of the collapse of several market participants

Debt Explorer | The fund finance ecosystem is in a period of flux as lenders and private equity funds take stock of new regulatory capital requirements and the impact of the collapse of several market participants

Debt Explorer | Prolonged M&A auction processes and cautious banks have put the brakes on leveraged finance activity in Spain, opening up opportunities for foreign lenders and private debt funds to gain market share

Debt Explorer | The Middle East restructuring landscape has been transformed in recent years, attracting new investors and providing borrowers and lenders with more flexibility

Debt Explorer | Stubborn inflation, ongoing interest rate hikes and the banking crisis in the US and Europe have slowed activity across global loan markets at the start of the year, but there are signs that loan issuance may start rebounding in the months ahead.

Debt Explorer | Despite ongoing economic headwinds, global high yield bond markets showed gains in the first quarter of 2023.

Debt Explorer | As leveraged loan markets have been impacted by a challenging macroeconomic environment, private equity sponsors are sharpening their focus on flexibility in their portfolio companies’ loan documents.

Debt Explorer | The macroeconomic headwinds that buffeted European debt markets in 2022—from rising interest rates to volatile geopolitics and a tightening of financial markets—continue to weigh on activity in 2023

Debt Explorer | Sustainability-linked and green loan issuance in the US proved resilient in 2022 despite overall dislocation and disruption in loan markets

Although the issuances of sustainability-linked bonds declined by more than a third in 2022, government focus on delivering net-zero carbon emissions and companies and investors prioritizing ESG bode well for long-term SLBs prospects