The Leveraged Finance market has witnessed the largest contraction over the past two years in over a decade but is the market expected to come back with a bang in 2024? Discover the impact of 2023 events on the leveraged finance market and read our ten predictions for 2024 in our concise annual report

Watch a snapshot on how we expect 2024 to unfold:

 

2023 in Review 

After several record years in the high-yield bond and leveraged loan markets (both in terms of value and volume), 2023 largely followed 2022 with lower levels of activity.

Trend highlights include:

  • Market participants held off on financings in light of higher rates and macroeconomic volatility, and M&A activity continued to be subdued. 
  • Focus remained on digitization and environmental, social and governance linked (ESG) financing during the year, as new technology for market and regulatory frameworks continued to progress.
  • During 2023, overall leveraged loan volume was down compared to 2022, with only institutional volume being slightly elevated, as a result of the very high refinancing activity in the market. Most borrowers turned to term loan B amend-and-extend deals, add-ons and refinancings.
  • During the past year, although the leveraged loan market saw a broad contraction in the US, apart from the financials, materials and retail sectors, it was relatively active in Europe and the UK, compared to 2022.

 

Ten Predictions to Shape 2024

Read our predictions on how the leveraged finance market will respond to an environment of rising interest rates, high inflation and geopolitical turmoil. Will we see a wave of refinancing and M&A activity pick up? Will economic growth outweigh recession?


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