Bahrain-based Investcorp bullish on global credit market in H2

Bahrain-based Investcorp bullish on global credit market in H2

Investcorp’s quarterly “House View” on the state of global credit markets reviews the key trends driving performance and market dynamics in US and European credit and provides the firm’s expectations through year-end 2021. “Amid strong global growth in recent months and a supportive economic backdrop, we continue to remain optimistic about the future of global credit market performance through the end of the year,” said Jeremy Ghose, Global Head of Investcorp Credit Management. “While the Covid-19 Delta variant has emerged as a potential deterrent to growth expectations, credit fundamentals are nonetheless solid and improving and CLO issuance has reached record levels to meet high demand for floating rate loan assets. We expect the favourable trends we saw in H1 to stay through year-end.” Key insights highlighted in the report include: • Investcorp expects the global environment for credit to remain favourable throughout H2 2021. The global economy is continuing its post-pandemic recovery, central banks remain accommodative, capital markets are accessible to borrowers and credit fundamentals are improving. • Demand for loans remains robust, with CLO issuance ending at a record $79 billion in H1 and projected to reach $140 billion for the full year. Investors concerned about rates continue to