Global perspectives: Current trends and outlook for the leveraged loan market
The obvious statement that 2020 was a year of unprecedented challenges needs no explaining. Just like other industries, the leveraged loan market felt the impact of Covid-19 outbreaks and lockdowns (especially in the first and second quarters), as global travel ceased and businesses in certain sectors ground to a halt, making due diligence, valuation and private equity deal-making all but impossible. This suppressed activity in 2020 caused pent-up demand, which together with cheap financing costs, led to predictions of a busier year for sponsor backed M&A in 2021.