Refinancing 2012: bank market in retreat
The Refinancing Report 2012 from Debtwire, in conjunction with Roland Berger Stratgy Consultants, Freshfields Bruckhaus Deringer and Rothschild, provides some interesting insights into how both borrowers and lenders are thinking about market timing, sources of funding and the key challenges they expect to face.
Borrowers look complacent over potential volumes maturing in the next three years and a potential crowding of the refinancing window, but all groups of respondents have begun factoring in changes in the banking landscape as a result of the sovereign debt crisis and rising regulatory capital requirements. Both borrowers and lenders anticipate a greater switch from loans into bonds, with private equity and alternative capital providers also expected to play substantial roles in refinancing.
This is the second Debtwire Refinancing Report, presenting detailed results of a survey of 50 representatives from the borrower community (split between private equity firms and corporates) and 50 representatives from the lender community, with their views of market conditions ahead of their refinancing plans.