Credit Conditions is a quarterly publication from McDermott Will & Emery that analyzes recent debt market trends. We invite you to visit this page for the latest publications, recordings, and updates from our Corporate Finance team.
In Depth
Credit Conditions | Q1 2024: High interest rates in 2023 posed significant challenges for dealmakers and debt markets. However, 2024 brings optimism with anticipated rate cuts and improving market conditions, leading to a boost in M&A activity and a revival in the broadly syndicated loan market. While the private credit industry remains dominant, there are indications of a shift back towards broadly syndicated loans as interest rates decline.
Credit Conditions | Q2 2024: Interest rates are expected to stay elevated, with only one rate cut projected between September and December 2024. Despite the high rates dampening M&A activity, there are positive signs of improving market sentiment and increased activity in private credit and broadly syndicated loan markets.
Credit Conditions | Q3 2024: This edition highlights a significant shift in the Federal Reserve’s approach, with a recent 0.50% rate cut and projections for further cuts, signaling a move from inflation control to labor market stabilization. The report also notes a revival in M&A activity, driven by declining rates and substantial private equity capital, alongside record-setting refinancings and new money issuances in the broadly syndicated loan market.
Webinar Recordings
Q3 2024 | McDermott Partners Aymen Mahmoud and Ellen Snare led an in-depth discussion on market conditions, following the release of our Q3 publication. The webinar covered financings through both a US and European lens including the end of “higher for longer” in the US, a surge in new money issuances for M&A and private equity activity, the comeback of dividend recapitalizations and what you need to know, and evolving BSL and private credit markets and how to navigate the new landscape.
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