Jumps in the cycle

Wafer-thin margins and favourable conditions have tempted many borrowers to refinance in the syndicated loan market. But the cycle may now be shifting a gear. Much of the refinancing is done and lenders are venturing lower down the credit rankings. They may get stung. Christopher Spink reports

Loan syndication departments have been working at fever pitch since last year. But they continue to suffer dangerous pressure on margins, while maturities are stretched and covenants become sketchier. The competition is tempting them to take higher risks for less reward. That will continue until a shock kicks on the cycle.

In 1995 volumes hit their highest-ever levels $374.2 billion compared with $178.2 billion in 1994, tailing slightly to $180 billion in the first six months of this year.

Jumps in the cycle

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Jumps in the cycle

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The world’s best private banks for digital

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Eastward bound: Why Gulf banks are tapping Asia’s capital markets

Islamic Finance Innovation 2025

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