United States

KPMG Capital Advisory Q3 2013 Credit Markets Update

Oct 18, 2013
From the Advisory Institute

KPMG's Capital Advisory Q3 2013 Credit Markets Quarterly Update provides a snapshot of credit market activity July through September 2013, including a general overview, trends, pricing and structures.

Key insights from the Q3 newsletter include:

  • The leveraged loan market is on pace for a record year in 2013, as total year-to-date volume through September reached $478 billion, the highest figure ever for the first nine months of the year
    • Repricings took a back seat to M&A volume during the quarter that reached $55 billion, a 62-percent increase over the second quarter
    • Refinancings share of loan issuance fell from 57 percent in the first half of 2013 to 49 percent through the third quarter
  • The loan market dipped during the quarter with $125 billion of loan volume, a decline from the second quarter ($164 billion) driven primarily by a slow summer and a minicorrection after the Federal Reserve indicated that it might begin to taper its bond-buying program
    • The market recovered in late July as several billion-dollar LBOs came to market. Additionally, the Fed also confirmed its commitment in the near term to keep interest rates near zero as long as unemployment remains above 6.5 percent
  • Lenders continue to be aggressive, driven by the supply-demand imbalance that still exists in the market. However, headed into the fourth quarter, the credit markets expect to be cautious with all eyes on Washington and the effects of the government shutdown and looming debt ceiling


For further details, read KPMG Capital Advisory Q2 2013 Credit Markets Update.


Contact KPMG

Philip Isom
Head of U.S. Corporate Finance