Leveraged Finance Day considered the outlook for loan and bond markets. The impact of buoyant valuations and ample liquidity was a theme throughout the discussions. Watch sessions from the event again.
Download the keynote presentation from Peter Dixon, Chief UK Economist at Commerzbank from the Leveraged Finance Day at Debtwire Week. Peters keynote looked at the macro-economic landscape and what can be expected in the financial markets in the future.
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.
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.