Market outlook muted as macro issues bite

摘要

Volumes in the EMEA primary syndicated ban market are expected to remain flat or decrease in 2016 as external factors continue to significantly impact the market, according to a Loan Market Association survey. Nearly half the respondents thought volumes would be unchanged, while almost 16% said the market would contract by more than 10%. However, just over 35% of respondents thought volumes would actually increase in 2016. Growing global political and economic uncertainty was expected by nearly 35% of respondents to have the greatest impact on the loan market in 2016, up from the around 16% polled in last year's survey. Competitive pressures are also expected to remain an important issue said around 28% of those surveyed. The perennial issues of regulatory requirements and bank funding costs are also expected to have an impact in 2016, polling 16.8% and 13.5%, respectively. Financial regulatory changes over the last five years have significantly affected the business of 71.5% of respondents, of which 27.2% have been materially impacted.