Market Information Wednesday 01 April 2026

U.S. banks are raising borrowing costs for private credit funds, particularly for credit facilities extended to business development companies (BDCs). Spreads on back leverage loans have climbed to as much as 2 percentage points over the Secured Overnight Financing Rate (SOFR), up from around 1.75 to 1.80 percentage points in November 2024. Concerns over portfolio valuations, software sector exposure, and rising redemption requests are driving the tightening. BDCs held approximately $513 billion in assets as of late 2025, while U.S. banks had lent nearly $300 billion to private credit providers as of June 2025.

Chinese exporters are redirecting goods to the UK as U.S. tariffs limit access to American markets. Among the top 25 Chinese export categories to the UK, 14 saw prices fall in early 2026 compared to a year earlier. Passenger car prices dropped 4.6%, while volumes more than doubled. The Bank of England (BOE) estimates the drag on UK inflation at around 0.2 percentage points in 2026 and 2027, though some rate-setters consider that estimate conservative. However, concerns remain over the impact on domestic industry competitiveness.

Greece will rejoin MSCI’s developed markets (DM) index in May 2027, ending its status as the only eurozone market not classified as developed. The reclassification follows Greece’s recovery from a debt crisis that began in 2009, which required three international bailouts totalling over 240 billion euros. The country regained investment-grade status in late 2023. Not all Greek companies currently in the emerging markets (EM) index will move to the DM index, and both JPMorgan and Goldman Sachs expect a net passive outflow as a result of the transition.

The 6M Euribor increased with 3 basis points to 2.53% compared to previous business day. The 10Y Swap decreased with 3 basis points to 3.07% compared to previous business day.

In the attachment, today’s market data on money and capital market rates as well as other rates are presented.