December 2002
How to build a corporate deal
With the public corporate bond markets volatile and unreliable, companies need to take advantage of MTN opportunities. Debt capital market bankers have the time to present them with imaginative proposals. But some of these, such as private-to-public deals, are not without their perils.
DESPITE A FLURRY of new corporate bond issues last
month, debt capital markets teams haven't exactly been run
off their feet since the middle of the year. It's been tough
to get stand-alone corporate deals done. And bankers have had
a lot more time to get in front of corporate clients and
pitch ideas about other funding options.
In the light of extreme volatility in public bond markets,
corporates have compelling reasons to fund themselves through
EMTNs. Most cannot be choosy and need to be able to take advantage
of pockets of investor demand, however small or large,
opportunistically. They cannot hang around for the documentation to
be completed to do stand-alone public issues.
There are some bright spots. Money-market funds looking to pick
up yield have bolstered demand for public MTNs of one to two years'
maturity. Yet overall corporate deal flow in EMTNs is well down on
last year and was...
This is archived content. Your current settings does not currently allow access to the archive. To gain access visit the subscription page or call our hotline on +44 (0)207 779 8999.
If you are a trialist or subscriber, please enter your username and password at the top right-hand side of euromoney.com
Subscribers to Euromoney benefit from:
Level 1:
- Online access to the past 12 months content
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Level 2:
- Exclusive access to euromoney.com - Read the latest issue early online, search for specific developments by region or sector, interrogate the results of Euromoney's benchmark polls, and view the archive dating back to 2000
- 12 monthly issues of Euromoney magazine
- More than 30 specialist research guides free
- The results of Euromoney’s polls and surveys
- Tailored RSS news feeds direct to your desktop
- News delivered directly to your mobile device or PC
- Personalised email newsfeed of 'Top stories' and 'Breaking news'
Click here to subscribe