Bankers bet on 2026 after underwriting $65 bn in deals

Investors are eager but selective, favouring strong credits while pushing back weaker deals

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Leveraged finance bankers have long anticipated the return of M&A. Now they're betting that next year they might finally be right. Banks have underwritten around $65 billion of debt tied to leveraged buyouts for 2026, show Bloomberg calculations, fuelling hopes for one of the strongest years so far this decade.

Dealmakers are banking on markets remaining calm enough to sell on those commitments to investors.

Get it right, and they'll pocket some of the most lucrative fees in investment banking. Get it wrong, and they risk a repeat of 2022's painful losses. “We expect an increase in LBO financings to drive the BSL market in 2026,” said Alex Robb, a finance partner at law firm Ropes & Gray, referring to the broadly syndicated loan market. “The success of this pipeline hinges on the market's resilience. Any volatility could challenge syndication efforts and pricing.”