Gambit Corporate Finance’s Debt Capital Markets Review for January 2026 examines the latest developments in the debt markets, providing insight and analysis into the current lending landscape.
Post-Budget stability has improved market confidence, supporting a more constructive lending environment despite ongoing geopolitical uncertainty. Positive takeaways include:
- Capital Economics forecasts further base rate cuts in 2026, with the base rate reaching 3.0% and inflation falling back to around 2.2%
- Lending to large corporates and SMEs has improved significantly
- European leveraged loan issuance in 2025 is expected to have reached the record highs of 2021
- The UK remains Europe’s leading direct lending market, accounting for just under 25% of total private debt deal volume in 2025
- Dividend recaps and cash out transactions continue to feature
- For quality proposals, debt markets are supportive of attractive pricing, leverage and structures
As credit markets continue to transition to a more borrower-friendly environment, it is essential to leverage the expertise of experienced corporate finance advisors to be well-prepared for discussions with the most relevant financial institutions.
Contact Gambit’s award-winning Debt Advisory team: Jason Evans, Sam Farrell, Harrie Thorrington and Oscar Webb
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