February 22, 2016
Author(s): Alexandra Margolis
Trends in the U.S. leveraged loan market in 2015 were driven by an increase in corporate mergers and acquisitions (M&A) activity and new money issuance, a more difficult regulatory environment and overall market volatility, affected by a global commodities slump and geopolitical instability.
M&A activity reached an all-time high in 2015, driven by cash-rich corporates seeking growth through acquisitions while interest rates still remain low. Much of the 2015 M&A activity consisted of megadeals, and middle market M&A did not see the same increase in activity. Corporate issuers issued a record $146.1 billion in acquisition-related leveraged loans in 2015, up from $95.8 billion in 2014, according to S&P Capital IQ Leveraged Commentary & Data (LCD).
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Reproduced with permission from BNA’s Banking Report, Vol. 106, No. 8, 279-284, 02/22/2016. Copyright © 2016 by The Bureau of National Affairs, Inc. (800-372-1033) http://www.bna.com
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