FTI Consulting Releases 2020 Survey of U.S. Loan Market
According to the survey, which was conducted from
“The hugely disruptive economic effects of COVID-19 in the
Key findings from the survey include:
- 68% of respondents believed
President Trumpwould win reelection.
- EBITDA adjustments have distorted real leverage metrics of many sponsor-owned companies, with 90% of respondents believing they have become more aggressive in recent years.
- Lenders were more willing to recapitalize and own businesses rather than selling at depressed prices.
- Only 27% of respondents believed that demand for leveraged loans as an asset class has peaked.
- 59% of respondents believed the
Federal Reservewould cut rates, which the Fed has since done twice as a result of the market turmoil.
“Lenders’ responses were highly consistent compared to last year with respect to many topics, including industries most likely to be distressed, the demand for leveraged loans, Fed policy decisions, and expected workout activity at their institutions,” said
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Source: FTI Consulting, Inc.