Key facts
- Borrowers are actively engaging with Europe's leveraged loan market.
- The activity is focused on repricing debt.
- The goal is to capitalize on favorable credit conditions.
- Borrowers aim to reduce their margins.
The leveraged loan market allows companies with higher debt levels to borrow money. Borrowers often seek to reprice their existing debt when market conditions are favorable, such as when credit spreads tighten or interest rates fall, to reduce their borrowing costs and improve their financial flexibility.