Discussed this month:
- U.S. loan volume fell significantly in 2019 from 2018 on weaker M&A and an aversion to single-B credits.
- Demand in the secondary was strong in December. In Europe demand was spurred by the U.K. election and more clarity around Brexit.
- 2019 was another strong year for CLO issuance, with record new issuance in Europe.
- Cross-border loan volume was down significantly in 2019 from 2018. However, early signs in 2020 are positive for an increase in cross-border loan activity.
- Distress ratios have generally risen in recent months, but default rates remain low. Risks are currently seen as idiosyncratic.
- Refinancings and repricings are likely in the first half of 2020 amid the low-rate environment.
More S&P Global video and audio resources are available here.
Taron Wade heads up LCD’s European Research efforts. Chris Porter is Head of Loan Recovery & CLO Business Development, S&P Global.
Please feel free to contact Chris if you’d like a particular topic discussed in next month’s video.
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