Global Leveraged Finance 2026 Outlook: Issuance, competition to grow amid rising credit vulnerabilities
In 2026, we expect M&A and leveraged buyout (LBO) activity to accelerate in the US and EMEA, with refinancings to remain elevated. This outlook follows a year in which most regional markets absorbed or quickly rebounded from volatility, trade tensions and headline bankruptcies, which slowed issuance in parts of 2025. In the year ahead, factors shaping leveraged finance dynamics will include monetary policy shifts, more focus on hidden leverage, intensifying deal competition and the increasingly entrenched coexistence of private credit and broadly syndicated loan (BSL) lenders.