Debt & Capital Advisory Insights Q2 2026

Financing conditions remain demanding. Geopolitical tensions are still weighing on the German economy, leaving companies more cautious on investment and borrowing, while further ECB rate hikes expected before year-end are pushing financing costs up further. Banks are not making things easier either: the Bundesbank's Bank Lending Survey and our own conversations with lenders both confirm that hurdles for accessing debt capital remain elevated. One exception is the leveraged finance market, which picked up meaningfully in Q2 2026, although this pickup has so far been driven mainly by refinancings rather than new acquisition financings.

Successfully raising financing in this environment calls for a professional and competitive process, the right financing partners, and a sound understanding of the market. This is exactly where our Debt & Capital Advisory team supports you.

Key findings from the report

Our latest report, "Insights Financing Conditions – Q2 2026," brings together the key developments, based on data from DIW Berlin, the ifo Institute, Deutsche Bundesbank, KfW Research, S&P Capital IQ and IMAP Market Intelligence: as of July 2026, Germany's business cycle barometer sits at its lowest level since autumn 2025, while the ifo Business Climate Index is only slowly improving. Per the Bundesbank's Bank Lending Survey, banks have tightened credit standards for the fifth consecutive quarter, in Q2 2026 particularly toward large corporates, with margins and covenants on riskier loans tightening noticeably. The KfW-ifo credit hurdle points the same way: companies report banks behaving markedly more restrictively in loan negotiations than in the prior quarter. EURIBOR 3M has risen on the back of the ECB rate hike, and the banks we surveyed expect a further increase in Q3 2026, with a first reduction unlikely before early 2027. The European leveraged finance market tells a more positive story: financing volume in Q2 2026 was around 14% above the prior four-quarter period, driven mainly by refinancings rather than new acquisition financings, while average all-in yields for CCC-rated financings rose to 20.8%.

What the report covers – and who it's for

Across 20 pages, the report covers four areas: German economic indicators, the current rate environment, the Bundesbank Bank Lending Survey, and the European leveraged finance market – presented concisely with charts, tables and commentary from our financing advisors. It is aimed at business owners, CFOs and decision-makers planning a financing, refinancing or acquisition financing who need a well-founded, current market overview.

Our team supports you end-to-end on new financings and refinancings, working capital solutions and rating advisory, as well as financing for acquisitions, mergers and succession. Thanks to long-standing financing experience, proven market intelligence and a network of more than 130 lenders contacted, we accelerate your financing process while saving your internal resources. Since 2025, we have raised more than EUR 900 million in financing volume and successfully executed 8 financing projects.

Planning a financing, refinancing or acquisition financing and want to make the most of current market conditions? We would be pleased to discuss this with you.