Despite economic hurdles, leverage levels still strong
August 12, 2016
PitchBook Dealmakers Column
In the face of global macroeconomic concerns, leverage levels in middle-market transactions remained near peak levels, reflecting the market’s underlying strength. The latest issue of BMO Sponsor Finance’s Transaction Trends points out that market participants have largely shrugged off potentially destabilizing issues such as the oil industry’s fallout and the UK’s exit from the European Union.
Looking at larger trends, it’s been seven years since the end of the Great Recession, but many middle-market companies have experienced an extended, if not slower, growth phase relative to other historical economic recoveries. And despite the generally positive sentiment for the US economy, recent statistics in the broader leveraged market would indicate that there has been a decline in credit quality.
Also, in a mid-year economic update, BMO Private Bank Chief Investment Officer Jack A. Ablin explains what the hiring slowdown in temporary workers could suggest for the economy.
To learn what’s behind these and other data points in middle-market deals, download the full issue of Transaction Trends. You can also contact Stephen R. Isaacs, Managing Director-Group Head, BMO Sponsor Finance, at +1 (312) 461-6236 or firstname.lastname@example.org.
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