Debt Capital Markets – Gambit Review Autumn 2024
Gambit Corporate Finance LLP’s Debt Capital Markets Review for Autumn 2024 examines the latest developments in the debt markets, providing insight and analysis into the current domestic lending landscape.
Inflation has decreased from its peak of 11.1% in October 2022 to 1.7% in September 2024, falling under the Bank of England’s mandated target level of 2.0%.
The Bank of England reduced the base rate by 25 basis points from its ceiling of 5.25% to 5.00% in August 2024, with a further 25 basis points cut to 4.75% in November 2024. Capital Economics forecasts rates will continue to fall to 3.5% by early 2026.
The UK now appears to be transitioning out of a “lenders’ market” environment, with an array of funding options available for well-prepared borrowers. Nevertheless, financial institutions remain focused on scrutinising covenant headroom, sensitivity scenario testing and continue to pay careful attention to EBITDA ‘add-backs’.
In this current climate, it is essential to leverage the expertise of experienced corporate finance advisors to be well-prepared for discussions with financial institutions.
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