High-quality issuers revive corporate hybrid market
| The clocks are turning back all across the credit markets this autumn. When big LBOs, corporate M&A deals and debt-financed shareholder payouts took off at the start of this year, the bears warned about an imminent credit crunch. It hasn’t happened. Those headline leveraged deals glossed over just how strong corporate credit fundamentals had become, as earnings and margins stayed high, cash built up and corporate spending stayed modest until very recently. Yes, many companies will overextend themselves; some low-rated credits already have. And the crunch will eventually come. But as lenders remain flush with liquidity, the credit cycle clocks now say the day of reckoning might be years, not months, away. Peter Lee reports. |
VOLVO HAS TRADITIONALLY been regarded as a conservative but well run company that prudently maintained high cash balances to shelter it though downturns in the cyclical...
You must be a subscriber to access this archived content.
If your subscription includes access to the archive, please log in now to view.
To gain access to this content visit the subscription page or call our hotline on +44 (0)207 779 8999.
Subscribe online now and save up to 30% on your subscription.
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:
- 12 months access in print and online - on 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 1996
- 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