UK loan volumes in sharp Q3 decline

Senior loan activity retreated sharply in the UK in the third quarter: loan volumes totalled £2bn, against more than £8bn in the very busy Q2. Although this drop-off between Q2 and Q3 is not unusual, the figures compiled by Marlborough show that Q3 volume was also half of that recorded over the same period last year (£4bn).

This sharp decline mirrors that seen across the rest of Europe, with total loan volumes amounting to €19.8bn in Q2 against €30.2bn in the second quarter. This fall was driven in great part by uncertainty in the capital markets, even though M&A activity remained relatively healthy.

The more muted activity recorded in the UK in Q3 also saw spreads rise slightly to 438bps on average. This however remains below the pricing levels seen in the same period last year, when the weighted average institutional spread sat closer to 470bps.

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• Topics
• Financing
• UK / Ireland
• Marlborough Partners
• Senior debt