Shearman & Sterling partners Joshua Thompson (New York-Finance) and Caroline Leeds Ruby (London-Finance) co-authored a chapter in The International Comparative Legal Guide to Lending & Secured Finance. The guide, published by Global Legal Group, is in its third edition and also includes a chapter on Italy prepared by Shearman & Sterling’s Valerio Fontanesi and Vieri Parigi.
The chapter by Thompson and Leeds Ruby, titled “Global Trends in Leveraged Lending,” examines the impact on leveraged lending of key global trends, including a rise in M&A activity and new money deals, a changing regulatory environment and broad macro-economic and political developments. According to the authors, “The end of quantitative easing in the US (and the start of QE in Europe), persistent speculation on rising US interest rates and renewed regulatory clampdown on federally regulated entities (e.g., banks) contributed to an environment of volatility. Despite the fluctuation of sentiment and market stability, the leveraged finance market as an asset class performed well.” In the chapter, Thompson and Leeds Ruby also address the impact of volatility, European and Asian borrowers accessing the US loan financing markets, the reshaping of liquidity and CLO issuance, cov-lite loans, the drop of oil and gas prices, investment grade loans, sanctions, dividend recapitalizations, the return of upward flex, unitranche facilities, syndicate control, ABL deals, and regulatory and political overhang.
The Italy chapter, written by Fontanesi and Parigi in the form of a Q&A, looks at a number of timely topics, including the main trends/significant developments in the lending markets in Italy, exchange control, collateral security, filing, notification or registration requirements, syndicated lending/agency/trustee transfers, payment defaults, bankruptcy proceedings and jurisdiction and waiver of immunity.