FinLoop Quarter 4 2022 Debt Liquidity Barometer and Outlook 2023
Key findings Q4 2022
- 10-yr government bond yields peaked in September/October 2022 ending at slightly lower or stable rates in December 2022, however further increases in ECB base interest rates are expected for 2023.
- GDP growth forecasts for year-end 2022 are indicating zero to 0.2% growth for the Eurozone countries, the UK forecasts negative growth of -0.3%.
- Property yields have started softening in several sectors and geographic locations, allowing for the much-needed adjustment in values. Key office locations such as London, Berlin, Paris are expecting rapid adjustments with yields moving out 80 -100bps.
- FinLoop marketplace recorded a recover of transaction activity in Q4 2022 with a nearly 50% from Q3 2022, although some of the activity came from borrowers seeking capex and bridging loans for existing assets, accounting for every third request.
- Key asset types where office and residential assets, especially in a combination of commercial and residential spaces; multi-use, multi-tenant.