Finding Clarity In Refinancing: How To Leverage Common Platform Information

Following a period marked by uncertainty during the pandemic, recent macroeconomic trends – particularly heightened inflation and interest rates – have placed significant financial pressures on companies, especially those with elevated leverage.

The UK financial landscape remains delicately balanced following the Monetary Policy Committee's decision in September to hold the Bank of England's interest rate at 5%, while a fast-approaching autumn budget from the new UK Government provides potential for further business disruption.

More broadly, default rates in European leveraged loan markets and high-yield bond markets are reported as likely to reach 4% this year – a notable increase from below 3% just 12 months prior. AlixPartners' recent Mid-Market Debt Report also highlighted "a significant ramp-up in debt refinancing activity, to be expected between 2024 and 2026".