With non-performing loan markets at a pivotal  point, investors set to expand geographical reach.

Brexit is the main macroeconomic factor likely to drive a European restructuring wave in 2019, according to Debtwire’s 15th European Distressed Debt Market Outlook.

Italy, the political situation, its widening spread and the increasingly tense relationship with the EU are as topical as Brexit, these days.

We were joined by some of the leading voices in the industry at the annual Mid-Market forum, here's what they had to say.

• Mutual recognition risk in the balance

Debtwire launched the 14th edition of the European Distressed Debt Market Outlook today (14 February), produced in association with Greenhill and Orrick.

• Continued covenant erosion to hit call protection and see signs of market overheating

• European retail sector has fared well compared to other sectors in spite of uncertainty
• Matalan and House of Fraser have reported positive results amid post-Brexit challenges
• However dark clouds still remain on the horizon as consumers get ever more stretched

• EUR 209bn has already been deployed this year across leveraged loans and high yield bonds
• Leveraged loans experienced a record year during the first half of 2017
• Refinanced capital took 61% of transactions during first three quarters of 2017

With political populism, negative interest rates, scarcity of liquidity, mounting regulation and the ties that bind the European Union seemingly beginning to unravel, many are on guard and wondering where the next shock will come from.

Emma Roche of Debtwire chaired a head-to-head debate between HSBC and Ares Management to level some of the views held by banks and direct lenders about each other. 

Cross-border and cross asset-class convergence rumbles on in the European high yield bond and leveraged loan markets.