We are characterized by a reliable combination of digital know-how, experienced specialists and renowned partners.
Back
In the second quarter of 2022, the market volume of the Schuldschein loan market is also well above the previous year. With a volume of €15.7 billion and 73 valued transactions, the market volume is now significantly above the previous year (+120%) and is therefore at an all-time high for every quarter. In anticipation of further rising interest rates, there were a large number of new issues in the second quarter. 17 transactions were green or ESG related. There are currently 22 issues with a marketing volume of >1.5 billion € in placement and will be valued in July and August.
Spreads have continued to rise slightly, but in contrast to the capital market, the premiums are moderate. The risk premiums are primarily due to economic uncertainties in connection with the Russia-Ukraine conflict and inflation. The average margin is around 105 bps over a term of five years. The focus remains on the 5 and 7-year durations. In addition, a large number of transactions are being digitally supported. Finpair was able to successfully close 10 transactions in the second quarter.
The reference interest rate environment has also risen sharply since the beginning of the year and is now back to 2012 levels. The markets are experiencing high volatility with fluctuations of up to 0.30% per day. The first announced key interest rate hikes have now been priced in. It remains exciting to see what the central bank's further interest rate hikes look like and have already been anticipated by the market.
While the 5-year Midswap was trading at zero interest rate level at the end of last year, the reference interest rate is currently 1.55%. (As of 12.07.2022). The 6-month EURIBOR is also positive in the second quarter at currently 0.365% (as of 11.07.2022). The reference interest rate floor established in recent years is therefore becoming increasingly less important.
Cash bond spreads provide information about the immense movements during the crisis. As at the beginning of the year, spreads continue to rise and issuers must also plan for increasing risk premiums in the second half of the year. This affects all sectors in varying degrees and is due to economic uncertainty.
The robustness and resilience of the Schuldschein loan market is particularly evident in turbulent times. In view of uncertainty in the global economy, interest costs are rising, but the increase is still low compared to bonds and liquidity is still available in the market. Overall, the Schuldschein loan in the second quarter of 2022 continues to be a reliable financing component in any corporate financing.
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.
