2016 was marked by major political upheaval—most notably the Brexit vote, US presidential election, and macroeconomic uncertainty. Regardless, the debt markets seem to have taken little notice.*
At a glance
- A competitive lending environment has ushered in increasingly borrower-friendly terms.
- The main driver has been the major supply and demand imbalance in European debt markets.
- But the debt market’s buoyancy may not extend to all sectors—in fact, the retail sector remains under pressure.
- Default levels are likely to rise—though we don’t yet know when and by how much.
- Having access to multiple alternative sources of financing and addressing refinancing requirements early will be key going forward.
*Based on AlixPartners' foreword titled Buoyant debt market conditions, but will retailers be able to cash in?