Marielle joined Altimapa in June 2023

Vlad Groza has been with Altimapa Capital for four years

Martin Nowicki joined Altimapa in April 2023

2024 started with central banks approaching the peak of interest rates, and the resulting promise of greater stability, despite geopolitical events, such as a 20% surge in oil prices due to tensions in the Middle East, adding an element of uncertainty.  

Below we review the trends affecting banks, private debt funds and public bond markets.

The Global Credit Outlook 2024 by S&P Global Ratings highlights how the end of cheap money represents a return to credit fundamentals and liquidity analysis in the face of a higher cost of debt, increased maturities, and slowing economic activity. We present some of the key take-aways for the mid-market.

The October 2023 Euro Area Bank Lending Survey indicates ongoing challenges in the lending environment in the Eurozone.

Small and medium-sized enterprises (SMEs) play a vital role in the economy of Scandinavia, accounting for a significant portion of the region's GDP and employment. However, despite their importance, SMEs in Scandinavia challenges when it comes to funding their operations and growth.

Venture debt lending has become an increasingly popular financing option for fast growing companies in Europe in recent years. Venture debt lenders provide capital to companies that are unable to obtain traditional financing due to their lack of profitability or business model.

Like most crisis before, this time is completely different and completely the same. But one aspect of the predicament we and the markets find ourselves in is clear already - it is not a crisis of liquidity as was the case in the late 00's. Instead liquidity is plentiful, the question being where will that liquidity find a home in the face of heightened uncertainty and a shifting geopolitical and economic landscape?

Move over Omicron: INFLATION is the new buzzword. The threat of inflation looming over central banks has made an already difficult situation that much harder to deal with. Looking back on the past year we can see that much action was centred around driving economic recovery, but now private lenders, banks and governments will need to adapt.