Banks Boost Protections for Sterling Loans in Brexit Shadow
- Flex provisions, swaps, pre-placement all layers of strategy
- U.K. borrowers can find appetite but liquidity has thinned
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The intensification of Brexit woes hasn’t entirely deterred banks from drawing up sterling deals in Europe’s leveraged loan market, but arrangers are cushioning themselves with additional protection.
Transactions in the U.K. currency have become difficult as lenders sharpen their focus on credit quality due to the uncertainty around Britain’s future in the European Union, reducing the pool of liquidity. Still, banks are cautiously moving ahead with some deals.