Salient to Investors:
Lenders say leveraged loan volumes in Asia may drop in 2013 as Europe’s debt crisis and China’s slowdown limits mergers and acquisitions while private equity firms avoid selling businesses at discounted prices.
Lyndon Hsu at HSBC said banks in the region have plenty of money to deploy and there’s a lot of equity capital floating around, but as Europe chokes on its own economic and financial problems and growth in China slows, transaction flows are drying up.
Leveraged finance and acquisition bankers expect corporate-to-corporate deals to provide some respite from the slump in activity, and banks in the region have demonstrated a huge appetite to lend.
Rupert Manduke-Curtis at Mizuho expects a slow start to 2013 in Asia which is not a bad thing as some uncertainty in Europe is ironed out and the US and China elections are over.