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lending margins

Equity is committed and ready to invest in prime European property, but a lack of clarity on debt terms is an issue for investors.
Borrowers with financially engineered performances face covenant breaches amid a market correction, warns AXA IM – Real Assets’ head of research and strategy.
Demand outstripping supply, increased investment activity and higher returns are making this space more appealing to lenders.
Returns from UK senior debt stabilised in the first three months after the Brexit vote according to CBRE, but more volatility is likely in the coming months. In its latest quarterly UK debt prospects report, the firm said its forecast for annualised gross returns from five-year lending in the third quarter 2016 was 3.1 percent, unchanged from Q2 2016.

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