Making Sense Navigating the bank loan market: Trends, volumes and strategies
May 27, 2025
In this engaging discussion, Patrick Griffin, a Managing Director at JP Morgan, shares his expertise in navigating the bank loan market. He highlights how this market differs from other credit avenues, emphasizing borrower-lender relationships. Key insights include current trends of declining mergers and increased refinancing, alongside strategies for CFOs to optimize capital raising. Patrick also discusses the importance of flexibility in credit agreements and building robust bank relationships to enhance financial outcomes.
AI Snips
Chapters
Transcript
Episode notes
Bank Loan Market Characteristics
- The bank loan market is regulated and less transparent than public markets, resulting in less day-to-day volatility.
- The market is highly relationship-driven, impacting pricing, terms, and capacity individually for borrowers.
Bank Participants and Preferences
- About 100 banks participate in the bank loan market, split mainly between US regional and money center banks, with some foreign banks.
- Each bank prefers different sectors and credit profiles, with some preferring revolvers over term loans for better returns.
Bank Loan Market Volume Trends
- Investment grade bank loan volume was $244B in Q1 2025, down 4% year-over-year, while leveraged bank loan volume rose 15% to $140B.
- Refinancings dominate use of proceeds in both segments, illustrating refinancing focus over new money or M&A.