In Depth
Credit Conditions: Hybrid Capital Webinar Recording | Q1 2025: McDermott Partners Julia Boyd, Christopher Kandel, Anh Lee, and Jason Zemmel led an insightful webinar discussion on hybrid capital, following the latest release of our popular quarterly editorial, Credit Conditions. The conversation explored the latest trends, opportunities, and challenges that investors face in this evolving landscape, and panelists shared their unique perspectives and strategies for navigating the complexities of hybrid capital structures.
Credit Conditions | Q4 2024: The fourth quarter of 2024 marked a pivotal moment in the debt market, as the Federal Reserve’s strategic two quarter-point rate cuts brought the year-end top line rate to 4.50%, setting the stage for a dynamic financial landscape. This coupled with a strong rebound in the private equity M&A sector, where exits surged by nearly 50% in count and 16% in value year over year, totaling $413.2 billion across 1,501 deals, sets the stage for continued growth in 2025.
Credit Conditions Webinar Recording | Q3 2024: McDermott Partners Aymen Mahmoud and Ellen Snare led an in-depth discussion on market conditions, following the release of our Q3 publication. The webinar covered financings through both a US and European lens including the end of “higher for longer” in the US, a surge in new money issuances for M&A and private equity activity, the comeback of dividend recapitalizations and what you need to know, and evolving BSL and private credit markets and how to navigate the new landscape.
Credit Conditions | Q3 2024: This edition highlights a significant shift in the Federal Reserve’s approach, with a recent 0.50% rate cut and projections for further cuts, signaling a move from inflation control to labor market stabilization. The report also notes a revival in M&A activity, driven by declining rates and substantial private equity capital, alongside record-setting refinancings and new money issuances in the broadly syndicated loan market.
Credit Conditions | Q2 2024: Interest rates are expected to stay elevated, with only one rate cut projected between September and December 2024. Despite the high rates dampening M&A activity, there are positive signs of improving market sentiment and increased activity in private credit and broadly syndicated loan markets.
Credit Conditions | Q1 2024: High interest rates in 2023 posed significant challenges for dealmakers and debt markets. However, 2024 brings optimism with anticipated rate cuts and improving market conditions, leading to a boost in M&A activity and a revival in the broadly syndicated loan market. While the private credit industry remains dominant, there are indications of a shift back towards broadly syndicated loans as interest rates decline.