Debt Market Update: Q3 2014 | KPMG | AU

Debt Market Update: Q3 2014

Debt Market Update: Q3 2014

The third quarter of 2014 marked a significant milestone in Australian syndicated loans with rolling 12-month volume of US$114 billion beating the pre-GFC peak of US$113 billion in Q1 2008.

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Debt Market Quarterly Update: Q3 2014

There was US$20.1billion in new issuance with 31 transactions in the period. This represents a 48 percent increase in volume from Q3 2013 although a drop from Q2 2014 as is traditionally the case.

Adding to this positive issuance volume environment is 12-month deal numbers running above 200 for the fourth consecutive quarter. Indeed data collected since 2001 by Bloomberg suggests that corporate issuance is at an all-time high supporting suggestions that market liquidity is incredibly favourable for corporate issuance.

Key insights

  • Continuing increase in issuance volumes and ongoing margin tightening in Australian debt market.
  • Base interest rates remain at all-time lows but indications of potential hikes in some markets.
  • Australian securitisation market shows signs of resurgence.
  • Concerns of a credit bubble developing in US leveraged markets.
  • Debt capital structure planning key to IPO success.

Debt Market Quarterly Update

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