Excerpt: In this article, our lawyers provide an overview of the main trends in the leveraged finance market during a turbulent period, with an M&A backlog and imminent maturities indicating a recovery. They look at changes in borrowing activity, new challenges with new solutions, ESG and digital bonds and consider if a bounce-back is on the horizon.

Demanding macroeconomic and geopolitical factors have led borrowers in the leveraged finance market to pursue alternative arrangements, but our lawyers suggest there are signs of a brighter outlook in the UK. In this article, our lawyers provide a market overview and outlook, explore alternative sources of capital and examine product-specific developments and regulatory reform, and benchmark change in ESG, digital bonds, CMBS maturity wall, Secured Overnight Financing Rate and uptiering transactions.

Watch and listen to Baker McKenzie specialists and industry experts talk about recent legal and commercial developments affecting financial institutions around the world. The latest webinar in the series looks at Sustainability for Financial Institutions – Global Trends and the LatAm Perspective.

In this edition of In the Know, we will provide a “primer” in respect of the developments in the digital bond space, using the European Investment Bank bond as a potential bellwether event for future development in our markets and then try and address some fundamental questions — what does all this mean for our market? Where are we headed now?