Cool Britannia? — Sterling loans snap back
- Alessandro Albano
- +Alexandros Chatzigiannis
Sterling-denominated leveraged loans are an unloved investment. Despite the UK’s active buyout market, many UK-based borrowers opt to skip their domestic currency, as the CLO-heavy and euro-focused buyer base in European leveraged finance leaves sterling without a deep natural bid.
But this year, there’s been a small turnaround, with more UK-based borrowers tapping sterling, especially in recent weeks.