Gambit Corporate Finance LLP Debt Capital Markets Review for May 2026 examines the latest developments in the debt markets, providing insight and analysis into the current lending landscape.
UK inflation has eased materially, falling from a peak of 11.1% in October 2022 to 2.8% in April 2026.
The base rate has been lowered from 5.25% in September 2023 to 3.75% in December 2025 and has remained at this level.
Looking ahead to 2027, base rate forecasts remain highly divergent amid ongoing geopolitical and macroeconomic uncertainty.
Nevertheless, debt pricing has stablised, lending volumes to large corporates and SMEs have improved and European leveraged loan markets hit record highs in 2025.
Dividend recaps and cash out transactions continue to feature.
The UK remains Europe’s leading direct lending market, accounting for just under 25% of total private debt deal volume in 2025.
In short, whilst borrowing conditions have improved, leveraging the expertise of a knowledgeable debt advisor to support a quality proposal to present to the most relevant funder audience is key to achieving a successful fundraise.
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