![image](https://c-assets.papillon.io/image/fetch/s--YnOMApIW--/c_thumb,g_face,fl_progressive,z_0.82,h_200,q_90,w_200/https://c-assets.papillon.io/image/fetch/s--YnOMApIW--/f_auto/https://dkf1ato8y5dsg.cloudfront.net/uploads/52/504/cml-pic-profil.jpg)
Navigating the New Normal
Markets are facing a new reality – “A New Normal”. We’re now in an environment characterised by slower economic growth, higher interest rates, lower valuations and a plethora of geopolitical risks capable of destabilising markets.
This new landscape prompts us to ponder:
- How will these conditions alter the behaviours and financial strategies of key market players, including issuers, sponsors, the banking community, and the CLO market?
- What will this mean for issuance levels, deal structures, and the deployment of exceptionally high levels of dry powder?
- What are the implications for covenants and credit quality, defaults, and recovery prospects?
- How will private credit evolve - can it coexist with the broader syndicated market, and if so, how will this play out?