For the last 10 weeks or so we have had the 'great debt pause' whilst lenders look after their existing borrowers - deal with waivers, amortisation holidays, interest deferrals, agree tenant variations, extend completion dates etc.
Lenders need to lend. So the 'great debt pause' must come to an end at some stage soon. Although the obvious fall out of that is more equity upfront and higher pricing no doubt.
Snippets here and there of new financings are generally refinancings with existing lenders or existing schemes which may mask the real new deal stories.
With so many different types of lenders now with different risk appetites and stressers, the common factor is the need for certainty. Certainty of income, certainty of value and certainty of exit. When that returns as we move into the brave new world, so the lenders can start to find that certainty.
Overall, the uncertain market outlook means lenders are reluctant to enter new lending opportunities, says Brookland’s Anker Parson. “The key obstacle for banks to start returning to more normal levels of lending is therefore one of short-term uncertainty rather than liquidity or capital or the lack thereof.”