This report explores what shaped the leveraged finance market in 2021 and maps ten predictions for 2022.
2021 in review
The leveraged finance market in 2021 saw record-breaking levels of activity, mainly driven by private equity M&A and LBOs, comprised mainly of opportunistic deals or ones which had previously been put on hold.
Trend highlights include:
- The use of sustainability-linked instruments became widespread throughout the markets with an increase of almost 50% annually over the past decade
- Sharp increase in high yield bond and Term Loan B borrowings in first two-quarters of 2021 Investor fatigue, broader market volatility and omicron variant slightly reduced transaction level in Q3 and Q4
- Economies weathered the storm and equity markets saw record-breaking growth
- Capital structures under strain were able to turn to alternative or more bespoke sources of funding
- Fierce market competition is driven by US and European investors’ appetite
- Borrower-friendly trends arose in the form of COVID-19-related adjustments
- Record year for special purpose acquisition company (SPAC) IPOs
Ten predictions to shape 2022
Find out how the EMEA leveraged finance market will respond to the continuing COVID-19 challenges and opportunities, the volatility of emerging markets and the continued focus on ESG factors.
You’ll also find predictions on direct lending, the impact of new Fintech options, the effect of rising interest rates and more.
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