Troubled waters: global loans struggle to stay afloat in third quarter
Global loan market activity continued to battle macroeconomic headwinds in 3Q22, reaching only USD 792bn of total issuance, down 35% from the same period last year. The quarterly figure is the second lowest in the past decade, exceeding only the USD 700bn raised during pandemic-afflicted 3Q20. Activity has been bolstered by issuance from the Americas, where firms managed to raise capital in excess of 2020’s total. In contrast, issuers in EMEA recorded the lowest overall quarterly activity (USD 730bn) since 2009, while issuance in Asia-Pacific (USD 508bn) fell below the level of the global financial crisis in 2008-09.
Macroeconomic factors continued to plague issuance, with rampant inflation resulting in tightening monetary policy, in turn increasing expectations of a recession in the near future. Together with destabilization in Europe caused by Russia’s ongoing invasion of Ukraine, markets continue in risk-off mode, draining capital from the equity markets and debt funds.
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