Liquidity to drive loans
Expect the strong levels of liquidity which defined the loan market in 2019 to continue into the New Year.
This is good news for borrowers. At this level, liquidity in the market creates a strong competitive environment, driving pricing and other factors in borrower’s favour.
That strong competitive environment also means borrowers can get longer tenor as investors seek yield - and are prepared to lend longer to achieve that outcome.
What that means for the institutional loan market is fund managers are increasingly getting involved.
As a result, borrowers are spoiled for choice, with significant diversity of investors keen to participate in transactions - both in terms of funding and tenor.
The challenge for borrowers is bringing those different investors with different needs together to find the best possible solution. That's where ANZ can help.
The New Year is upon us. The year 2020 looms as a landmark one for the global economy as trade, technological and environmental factors drive change at a scale rarely seen.
At ANZ Institutional, we aim to help our customers put themselves in the best possible position to take advantage of these forces. Our subject-matter experts have the insight to offer market-leading thought leadership in a range of complex areas from across more than 30 global markets.
We asked our experts about the key factors they see shaping markets and industry in 2020 – and the opportunities and challenges within. We’ll be sharing the responses with you over the coming weeks.
The growth in sustainable financing will also continue to grow in 2020. In the loan market this will play out in two parts - in sustainably linked loans and green loans.
This is a great outcome for both borrowers and also the environment.
Gavin Chappell is Head of Loan Syndications Australia at ANZ Institutional
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