Geopolitical risks taint loan market optimism

Author: Danielle Myles | Published: 12 Dec 2014
Which topic do you think will most influence the syndicated loan market over the next 12 months?
Nearly one third of Loan Market Association (LMA) members believe economic and geopolitical risks will be the biggest influence on the syndicated loan market in 2015.

The finding, from the LMA annual members’ survey released last week, is a rare blip in an otherwise optimistic sector. Of the 500-plus respondents spanning 32 countries, nearly half expect 2015 volumes to increase by more than 10% on this year’s.

"The findings show the resilience and robustness of the loan market," said LMA director Nick Voisey. "It’s encouraging to see confidence returning, with corporate M&A expected to provide the best opportunities next year."

More than a third of respondents believe acquisition finance, which is needed for the loan market to operate close to capacity, will provide next year’s best opportunities.

One of...