Lender?s Perspective on Financing: Back to the Future!

Debt Financing ?Broad Market Overview ? Recovering due to factors including: ? Increased trust in the system ? Enhanced capitalization of financial institutions ? The need to deploy capital for profit ? Competition: ? Investment-grade bond volumes increasing dramatically, and starting to pressure banks to compete with new capital ? Term Loan B financing from insurance companies and related institutions is returning, also pressuring banks to lend ? Local country financial institution capacity in Latin America has materially increased ? Results: ? Loan capacity increasing generally across instruments, regions, and sectors ? Financial institutions/banks starting again to seek yield as pricing competition heats up ? Tenors increasing with pricing coming down more slowly Underwriting is back in play