Rebound in loan activity helps investment banks

THE GLOBAL loan market rebounded to volume of $4.9 trillion (£3.1 trillion) in 2011, a level not seen since 2007, amid soaring corporate demand for refinancing of their debt facilities, data yesterday showed.

Both investment grade and leveraged loans boomed, with loans from rated companies at their highest level since 2007 at £1.78 trillion, while leveraged loans soared 51 per cent year-on-year to more than $1 trillion.

The growth helped banks, with loan revenues up 48 per cent compared with 2010, to $17.1bn.

Dealogic ranked JP Morgan the top global bookrunner for the market, with a 10.9 per cent market share.

Demand for loans to refinance existing debt rose for a third year to $1.96 trillion, accounting for nearly half of all loan volume in 2011. In contrast, acquisition-related loans accounted for just 11 per cent of loan volume, though in absolute terms they rose 24 per cent to $363.7bn.