As we are seeing economies across the U.S. and Europe recover from the pandemic, the credit markets are no exception. Though we see similar recovery paths in most regions, we detected distinct differences as well.

Europe suffered a similar Covid slump (and enjoyed a similar rebound) as the U.S. Yet Europe also retained the country-by-country distinctions they had pre-Covid. The recovery in all capital markets was swift; deal volumes are now at record highs.

Issuers and investors toggled less between U.S. and Europe than pre-Covid, but that could rebalance in the medium-term. Private credit fundraising has been robust, with most capital dedicated to senior and subordinated debt strategies, as well as distressed.