Zanders Debt Market Update Q3-2023

Download our latest debt report. The ECB has continued to raise interest rates in Q3 with the goal to retain control over inflation, but with lower spikes than implemented in 2022. In October however, the ECB left the interest rate unchanged for the first time since the start of the spikes in juli 2022. The prospect of a recession persists leading to concerns that rising interest rates may exacerbate any downturn.”

Benchmark borrowing costs for new issuances remain below September 2022 levels despite significant fluctuations in recent months. Costs of borrowing for corporates with floating rate loans has increased dramatically with an 80 bps increase so far this year.

ESG volume continues to grow as a percentage of all loans in Europe, borrowers are enticed to include ESG criteria by reduced margins and greater liquidity.

Please view the Zanders debt report for a concise view on the state of the European Debt Market.