Asset Servicing Industry News | U.S. direct lending market set to grow, says Ocorian research


59% of capital markets executives expect the U.S. direct lending market to grow over the next 18 months, according to recent research from service provider Ocorian. Only 1% expect loan volumes to remain stagnant.

In the direct lending market, a slight or dramatic increase over the next 18 months was predicted for mergers and acquisitions by 83% of respondents, while 77% predicted it for refinancing.

71% expect to see an increase in the leveraged loan market and 69% believe that restructurings will see growth.

This increase in loans should result from the good performance of these asset classes and the desire of investors to diversify their portfolios. Almost three-quarters (71 percent) of respondents expect a slight increase in regulation, and a further 15 percent predict a dramatic increase.

The study interviewed capital markets executives in the US and UK who specialize in senior lending to companies with annual revenues of less than US$1 billion.

Martin Reed, Head of Capital Markets for the Americas at Ocorian, said: “Regulatory improvements are seen as the main driver of growth in the direct lending market, with senior executives working in the sector expecting an increase the volume of loans during the period. next 18 months. Of course, regulation is not the only factor, and our research has identified the need for diversification and the performance of these asset classes in volatile markets also drives expansion.


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