LMA releases results of its German Loan Market Survey02 July 2020
As part of the run up to the LMA's virtual panel discussions covering the German Loan Market, the LMA surveyed its membership on the opportunities and challenges facing this market. The results, set out below, were collected anonymously and represent the personal views of professionals actively working in the German syndicated loan market. To view a comparison, where applicable, of our 2020 results with 2019, click here.
The majority of respondents are optimistic for growth in the German loan market over the next 12 months, most seeing a decline however in both M&A and sponsor-led activity, suggesting perhaps that growth is more likely to be driven by support for corporate relationships. There is also cautious optimism for growth in domestic Schuldschein issuance, less so however for international deals. The market is likely to be directly impacted by the effects of the pandemic into the medium term, with results suggesting a legacy mix of increasing defaults and NPL volumes, structural change to the loan product and at least partial reliance on support schemes.