Capital markets instantly paused due to the economic uncertainty resulting from the pandemic’s start almost three months ago. Although conditions have begun to see improvement within the market, the uncertainty still overwhelmingly lingers in the primary market.
A significant misconception relating to the uncertainty in the capital markets even months later is the absence of capital. Although many attend to this idea, in reality, the market consists of pent-up capital, and lenders are undoubtedly interested in providing loans during this time. There is still an abundance of capital sources available, even with the impacts of COVID-19. Even through this pandemic, the current situation has presented itself as a good opportunity for borrowers to secure debt through the right deals.
The historically low-interest rates in this current environment provide opportunities within the market to restructure financing for long-term success. With some deals having been underwritten years prior, this creates an unprecedented opportunity to take advantage of these all-time low rates. Tauro Capital is no stranger to this opportunity; they have seized the situation and are seeing an increase in deal flow since the start of the pandemic. These results have shown that lenders are still very active and eager for business despite the market’s current uncertainty.