Leveraged loans
A resourceful market facing fierce competition
Créé le
05.12.2016-
Mis à jour le
12.12.2016Comparé à son confrère américain, le marché européen des leveraged loans connaît plusieurs limitations internes ainsi qu’une compétition intensifiée avec d’autres moyens de financement ayant impacté négativement son développement depuis la crise financière. Cependant, plusieurs avancées récentes au niveau européen ainsi que de meilleurs perspectives macroéconomiques devraient prochainement favoriser son expansion.
Leveraged loans are issued by corporations considered as speculative. They typically pay Libor +220 basis points or more.
Leveraged loans have unique features
Leveraged loans are commonly used for 3 reasons. First, M&A and LBO activity. Financial sponsors typically use them to provide flexible medium-term finance to fund acquisitions rapidly. The loan syndication process can be time-consuming and uncertain, but banks have developed an expertise in it[1] . These loans may then be subsequently refinanced in the High Yield bond markets, although to a greater extent in the US than in the European market. ...
