Things really do not get any better this. M&A has returned in full force, the global leveraged finance boom has continued and deals in the exciting new structured finance sector abound. Even the tightly priced refinancings that have dominated the market in recent years have become a distant memory, at least outside of the US. Profitable deals have finally returned as a market mainstay. In short, 2006 is the year that loan bankers have been waiting for. The return of corporate M&A has been the year's most exciting development and spawned two...Read more
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Long and cheap bilateral loans once dominated the German loan market but it has morphed into Europe's largest syndicated loan market. And German companies, despite being relative newcomers, are already among the most adept borrowers in Europe, raising large loans at competitive rates and the taking these loans out through the capital markets. And the openness of the German market means even smaller companies are enjoying unprecedented levels of liquidity. David Cox reports.
The M&A revival means 2006 looks likely to be one of the most profitable years for European loan banks in a long time. After three years of a refinancing-dominated market, drawn event-linked transactions are now offering banks decent yields. Victoria Pennington reports.
After more than five years of falling pricing, Russia has moved from a yield-driven market to one where relationship is paramount. For borrowers, this means despite an increase in deal size, syndicates are smaller and inverted – with more banks at the top. For lenders left out in the cold as the market matures, there are more sectors opening up providing other higher-yielding opportunities. David Cox reports.
Despite predictions of a consortium-led deal boom, Europe's private equity industry is having a tough time. Delays to larger public-to-private deals have forced sponsors to recapitalise deals faster than ever before in order to make returns. As banks rush to provide structures to support them, the leveraged finance market is changing irrevocably. Adrian Simpson reports.
Europe's Loan Market Association (LMA) is now ten years old. Since its inception it has grown from a small organisation focusing on the development of the then nascent secondary loan space to become the voice of the European market. Today the LMA remains as significant as it was a decade ago and focuses on market’s new challenges. David Cox reports.
Superficially it appears that little changed in the North American investment-grade loan market this year. Spreads continue to tighten, covenant protection is eroding and refinancings abound. But below that veneer it is clear that the fall in pricing has slowed and that there are fewer covenants to take out or soften. This recognition of what may be the best market yet for borrowers has spurred several jumbo refinancings and welcomed first-time borrowers to the market. Timothy Sifert reports.
High oil prices have turned the Middle East into one of the most vibrant markets in EMEA. Local and foreign banks alike are active in the region, corporate borrowers have joined the more traditional project and FI borrowers and Islamic finance is on the rise. Victoria Pennington reports.
US leveraged loan volumes rose almost 32% this year but even this was not enough to satisfy investor appetite. Early in the year, record tight spreads and covenant-light agreements accompanied the mammoth leveraged buyouts that often failed to sate investors, who were frequently compelled to invest on borrowers’ terms or not at all. But as the year progressed, these liquid investors were able to stand their ground. Loans were still completed, but lenders ended up with better terms in the bargain. Michelle Sierra Laffitte reports.
2006 will be seen as a watershed year for the Asian syndicated loan market. After much hype, leveraged finance has finally taken off and seems destined to grow in the coming years. This is great news for lenders, not only in terms of increased deal flow but also more opportunities for career advancement as investment banks set up leveraged finance desks in the region. Prakash Chakravarti, Shankar Ramakrishnan, Hamisah Samad, Cong Cong Tang report.
Australian loan bankers are hoping that private equity firms will provide a lucrative source of business amid a climate of contracting margins and the emergence of alternative funding for project finance. It seems bankers are only too happy to welcome the barbarians through the gates. Hugh Chow reports.
Mexican oil giant Pemex set the tone for 2006 with a US$5.5bn blowout loan in January that heralded the year of the Latin American megaloan. Pricing continued to fall as the refinancing wave continued, while the region's M&A boom spawned CVRD's US$18bn bridge loan, easily the largest emerging markets loan in history. James Crombie reports.