We are characterized by a reliable combination of digital know-how, experienced specialists and renowned partners.
Back
The Schuldschein loan market is off to a dynamic start to the current year 2022, with 26 valued transactions and over €6 billion, and the market volume is significantly higher than the previous year (+ 43%). In particular, benchmark transactions led to a significantly higher average volume (around €230 million) compared to the first quarter of 2021. The high volume of the Schuldschein loan market in the first quarter can also be attributed to the prevailing political uncertainty. In view of the Russia-Ukraine conflict, capital market transactions appear volatile, while the Schuldschein loan market is stable. This is also reflected in swap curves, which are volatile and characterized by inflation. Reference interest rates, which have risen sharply since the beginning of the year, are now back at 2014 levels.
While the 5-year Midswap was trading at zero interest rate level at the end of last year, issuers currently have to accept a premium of 126 bps on the spread (as of 11.04.2022). The 6-month EURIBOR remains negative at 0.36% (as of 11.04.2022), meaning that the reference interest rate floor rule prevailing in the Schuldschein loan market is still highly relevant only in the variable range.
Cash bond spreads remain low but tend to rise. However, some issuers must also plan for risk premiums. This applies in particular to industries that are affected by the pandemic and now also by the Russia-Ukraine conflict.
Would you like an exchange on current market developments or advice on an individual structure? Our experts will be happy to talk to you personally at any time.
