NEW YORK (S&P Global Ratings) April 5, 2022--The Global leveraged finance market is facing a year of divergence and accelerated disruption that will redefine the global economy and credit landscape. The Russian-Ukraine conflict, geopolitical shifts, disrupted trade flows, and commodity shortages are already key themes in 2022, while climate change, pandemic containment, evolving consumer preferences, and digital disruption are carrying over from last year. Investors remain wary as central banks seek to contain inflation whilst avoiding choking the nascent economic recovery.
"Over the past 12 months, we examined several of these threats to credit quality in Leveraged Finance and collateralized loan obligations. The hunt for yield remains pressing; the resilience of the CLO asset class continues to be tested; and for leveraged borrowers, sponsor behavior remains critical in these difficult times" said Trevor Pritchard and Ramki Muthukrishnan, heads of Leveraged Finance, EMEA and North America, respectively.
The Global Leveraged Finance Handbook, available for download here, contains key leveraged finance research reports published by S&P Global Ratings over recent months as well as contact information for our analytical team. Please don't hesitate to contact us with your thoughts.
This report does not constitute a rating action.
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|Primary Credit Analysts:||Ramki Muthukrishnan, New York + 1 (212) 438 1384;|
|Trevor N Pritchard, London + 44 20 7176 3737;|
|Media Contact:||Jeff Sexton, New York + 1 (212) 438 3448;|
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