United States

KPMG Capital Advisory Q4 2013 Credit Markets Update

Jan 14, 2014
From the Advisory Institute and the Global Enterprise Institute

KPMG's Capital Advisory Q4 2013 Credit Markets Quarterly Update provides a look at Q4, and the full 2013 year review of credit market activity, including a general overview, trends, pricing and structures.

Key insights for Q4 2013 credit markets include:

  • As hungry investors continued to chase yield, the leveraged loan market had a record year in 2013 with $605 billion of total loan volume, surpassing 2007’s prior record of $535 billion by 13%.
  • The overall loan investor base broadened during the year with retail, institutional, structured finance and relative value investors driven to the asset class due to a combination of risk adjusted yields and below-trend default rates.
  • Lenders are cautiously optimistic heading into 2014.
    • M&A volumes are expected to be thin driven by the landscape for large LBO deals which remains challenging in the face of regulatory and market-based headwinds.
    • However, lenders claim the drumbeat of deal screening continues but not at a pace that might rival 2006/2007.
    • As a result, refinancings and recapitalizations are expected to remain the key drivers of loan production in 2014 – at least for the first half of the year.


For further details, read KPMG Capital Advisory Q4 2013 Credit Markets Update.


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Philip Isom
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