Syndicated loan market enjoying pre-Brexit boost

Author: Olly Jackson | Published: 11 May 2018

Increased M&A activity and Brexit uncertainty has boosted the syndicated loan market, with the imminent interest rate rise forcing companies to refinance now rather than waiting for later down the line.

This means the next time borrowers have to refinance, they would do so when negotiating terms between the UK and the EU have solidified, and when there is be a far more clear and certain macro-environment than currently.

Last year, according to Thomson Reuters data, the UK led the EMEA region for syndicated lending. The $175.9 billion in proceeds comfortably beat Germany ($123 billion) and France ($117.7 billion), and it is expected that 2018 figures will be similar if not greater than last year.

UK M&A activity is also at its highest point in the past decade. In the first quarter of this year, deals amounted to $120 billion, with 681 deals completed, more than double the...