We are characterized by a reliable combination of digital know-how, experienced specialists and renowned partners.
Back
With a valued volume of over €30 billion and 155 transactions, the SSD market is significantly above the previous year (+30%) and thus at a record level. In addition, in December 2022 - 22 transactions were concluded with a currency in 2023 (a total of > €2 billion).
Sustainable financing structures were clearly the focus of the past year. ESG-linked transactions in particular are increasingly being targeted by issuers and investors and accounted for around 40% of the total volume. The year-end rally was characterized by a surprisingly high number of foreign emissions (outside the DACH region). As a result of the high level of uncertainty on the interest rate and capital markets and the associated rapid reversal of interest rates, the Schuldschein loan market experienced an increased willingness to invest by its investors.
In the last 12 months, too, a large number of transactions have been digitally supported. The share is growing and stood at around 60%. finpair was able to successfully complete 17 transactions in the past year.
Reference interest rates have currently risen sharply since the beginning of 2022. After a total of 4 interest rate hikes by the ECB, the key interest rate is currently 2.50%. Markets remain volatile. Depending on the term, interest premiums in the first two weeks of January are around 40-50 bps below their level at the end of the year. The interest rate curve is inverted and very flat. 1y 3.23% - 3y 2.92% - 5y 2.73% - 10y 2.65% (as of MidSwaps: 19.01.2023).
The upsurge in interest rates is a turning point. From zero interest rate to 3% level. (Example 5y MidSwap). The short-term yield curve based on the 6-month Euribor is also rising sharply, currently at 2.83%. (As of 18.01.2023)
With regard to the index, the spreads of cash bonds vs. iTraxx generally provide information about the immense movements during the crisis. Cash bond spreads have been growing since the beginning of the year, but have been declining again since autumn 2022.
By way of comparison, 5-year investment grade cash bonds are currently around 95 bps versus 45 bps in the previous year. Issuers must also calculate rising risk premiums for 2023. This affects all sectors to varying degrees and is due to future economic uncertainty and rising refinancing costs on the part of lenders. In the 4th quarter in particular, spread premiums were characterized by high deal flow and competition in the market. Spreads remain at higher levels at the start of the new year. Spreads are likely to tighten in the medium term.
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.
