logo Robert Schach Managing Editor - Europe, Debtwire

2016 proved to be another challenging year for the restructuring community, mostly as a result of a continued slim pipeline of workouts and distressed opportunities. Hedge fund returns remained well off the pace of their previous years, although bets on commodities, especially oil & gas, paid out handsomely, enabling many funds who had jumped in too early the prior year to make good their previous losses.

logo Mariana Valle Co-Deputy Editor, Debtwire

Last year defied many forecasts, with the Brexit referendum and election of US President Trump both upsetting the odds. This year could also be challenging for leveraged finance, with reduced central bank tailwinds as well as the triggering of Article 50 in the UK. Commodity-price volatility also leaves further jitters ahead, while the Netherlands, Germany, France and Norway face elections.

logo Mariana Valle Co-Deputy Editor, Debtwire

With banks fighting hard to keep hold of their turf, offering competitive leverage on deals, asset managers are increasingly looking to stretched senior financing as a way to compete in a level playing field. But with a rising number of players expected to offer the 5-6% stretched senior in 2017, the new debt solution risks doing to the unitranche what second lien did to mezzanine.