European leveraged finance in 2023 was saddled with the negative effects of elevated interest rates. But as the market adjusts to the “new normal”, rate and price stability offer hope for a brighter 2024.
-Rising interest rates have pushed up borrowing costs and constrained issuance activity.
- Subdued M&A pipeline and cautious underwriting by banks limit buyout financing opportunities.
- Where transactions have progressed, the bulk of activity has been propelled by refinancing deals.
- Private credit proves resilient in the face of wider dislocation, attracting banks into the segment.
- Jumbo Worldpay financing shows that investor appetite for high-quality credits remains strong, with a potential warming for backdrop in 2024.
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