International: Available credit choices for borrowers, issuers and sponsors: 2022–2023 snapshot

In brief

Leveraged finance debt issuance has fallen off a cliff in 2022, with many market participants not expecting a rebound until sometime in 2023. In this article, Rob Mathews, Ben Bierwirth and James Tanner consider the current state of primary debt financial products with international appeal in the leveraged or acquisition finance context.


Key takeaways

This article gives a snapshot of the current state of the primary debt financial products (bank debt, high yield (HY) bonds and direct lending) with international appeal in the leveraged or acquisition finance context, then considers alternate products that:

  • Are available only in discrete (or local markets), such as the Schuldschein in Germany, Nordic Bonds in that region, the Sukuk in MENA and, particularly in more recently emerged markets like the CEE and CIS, local-bank-led credit facilities.
  • Are seen (not always accurately) as being used only in specific circumstances or having complexity as a barrier to entry, such as securitizations, lombard loans, sale/leasebacks, real estate finance and ABLs/RBLs/CLOs.

And poses the question, "Could any of these local or discrete financial products have a broader appeal across new industries and jurisdictions?"

Please note that the original date of publication of this alert is 20 October 2022, but it was first published in IFLR on 10 October 2022. Full article available here.

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