Gambit Corporate Finance LLP announces the publication of its Debt Capital Markets Review for winter 2017/18.
- The macro economic environment is stronger than expected, with the IMF projecting global GDP growth of 3.5% in 2017 and 3.6% 2018.
- The UK economy has continued to be more resilient than many expected post Brexit vote, with the IMF expecting UK GDP growth of 1.7% for 2017 and 1.5% for 2018.
- The future for credit markets is heavily influenced by what happens to global interest rates in the coming years, with many expecting further interest rate rises in the future.
- Political risks such as Brexit have had less effect on the market than predicted, but concerns remain, particularly around any future trading agreements.
- The emergence of alternative funders has both added to available liquidity and presented a major challenge to traditional lenders.
- The UK dominates the use of alternative funders in Europe which account for 28% of UK total corporate lending, whereas the average in Europe is 10%. However, this is still some way off the 75% level in the USA – is this a sign of things to come?