Debt Advisory 2026 Lender Survey

We surveyed 168 lenders across Europe to understand how recent macroeconomic, political, and competitive shifts are shaping borrower outcomes.

Respondents included both banks and debt funds, spanning a broad mix of countries, regions, and ticket sizes, providing a representative view of the European leveraged finance market.

In 2025, lenders navigated a complex backdrop marked by tariffs, geopolitical uncertainty, and the rapid acceleration of AI adoption, all of which influenced market sentiment and decision-making. At the same time, easing inflation and declining benchmark rates pointed to a more stable underlying economic environment.

Against this backdrop, the market saw intensifying competition, subdued M&A activity, and an ongoing preference for higher-quality credits. Together, these dynamics drove a notable shift toward more borrower-friendly terms in 2025, including increased leverage appetite, improved pricing and greater structural flexibility.

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Key highlights

69%

of respondents saw margin reductions, with almost half (46%) of those reporting a reduction of 50bps or more

37%

of respondents reported that internal leverage appetite was higher than the prior year

41%

of debt funds reported an intention to increase hold capacity

45%

of debt funds indicated a typical headroom of 35% or more, which is a significant increase from previous years

“Over the last 12 months, we have successfully completed over 70 debt advisory transactions across Europe. As we move into 2026, momentum remains strong, with a robust pipeline supported by our private equity relationships, ongoing demand for funding, and improving credit appetite across the lender landscape.”

Simon Chambers, Partner and UK Head of Debt Advisory, Clearwater

Selected debt advisory transactions

Our transactions range across primary debt raises, acquisition finance, refinances, amendments and restructurings for a wide range of borrowers, providing accurate and up-to-the-minute market intelligence.