Global credit markets in 2017 look stable—at least for now, according to a report from S&P Global Market Intelligence. Major economies are expected to support that stability, but political uncertainty in pockets of the globe could put it at risk.
“S&P Global Fixed Income Research believes the U.S., Asia, and the eurozone will continue to support global credit stability, while political uncertainty in the U.K. and Brazil may offset it somewhat,” according to S&P’s Market Observations Q2 2017 report.
Meanwhile, total loans continue to grow across the banking industry but at a slower pace, which the report suggests is due to political gridlock in the United States.
The median year-over year increase in loans was 9.5 percent, a decline from 10.9 percent in the first quarter.
The report notes the rising number of deals valued above $10 billion involving targets outside the United States. As of July 17, 14 had been announced, the highest since the same period in 2007, in which 18 such transactions took place.
For more insight into global M&A activity, register to attend ACG EuroGrowth 2017 in London, Nov. 6-7.
Hollie Merrick is a frequent contributor to Middle Market Growth.