The new KPMG Debt Market Snapshot is here. Aiming to keep you up to date on the most recent developments in Europe's financing markets, our Debt Advisory experts use latest market data to discuss market drivers and provide first-hand insights from daily practice. The fourth quarter of 2020 marked an eventful end to a turbulent year, which was also evident in the European financing arena. Read more in our first edition of the Debt Market Snapshot.
The global spread of the coronavirus has dramatically changed our lives in many ways. Ongoing efforts to fight the pandemic include contact restrictions and economic shutdowns – this is putting a strain on a large number of companies as they seek to combat cash burn. Hence, increased uncertainty and risk are unavoidably making their presence felt in Europe's financing markets.
The first edition of the new KPMG Debt Market Snapshot discusses how the different European financing markets were affected by COVID-19 among other market drivers and puts Q4 developments into context of what was a turbulent 2020. Even though most countries returned to strict lockdowns late in the year, the news surrounding Biden’s win in the US election and the roll-out of the first coronavirus-vaccine in Europe caused financing market participants to breathe a sigh of relief and kept interest margins from rocketing – in contrast to what was observed in spring 2020. While bond asset classes showed great resilience throughout the year thanks to a tailwind from central bank stimulus, other market segments, such as the leveraged loan market, struggled significantly in terms of new-issue volume as sponsors and lenders were confronted with unprecedented levels of uncertainty. We also take a closer look at the sustainable debt markets which have seen record issuance numbers against the backdrop of the pandemic and its considerable socio-economic impacts.