Does Europe need its own private placement market?

Private placements have usurped securitization as Europe’s great SME financing hope. The financial markets support EU commissioner Jonathan Hill’s Capital Markets Union initiative to promote it. But the thriving US market will be hard to compete with, let alone replicate. Which leaves two questions: Can the EU build it? And, even if it can, will issuers and investors come?

For an initiative that has yet to truly define itself, Europe’s Capital Markets Union has an awful lot of friends. When The European Commission released its green paper on the topic in mid-February, the market fell over itself to applaud the plan.

Support came from both investors and banks. “Increasing the role that market finance plays in the European economy can diversify the sources, and potentially drive down the cost, of funding to the benefit of European companies and investment projects,” enthused BlackRock in an 18-page thesis on CMU.

Does Europe need its own private placement market?

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Does Europe need its own private placement market?

Thanks for your interest in Euromoney!To unlock this article:

Future capital markets infrastructure: Fungible, fractionalised and fused

Eastward bound: Why Gulf banks are tapping Asia’s capital markets

Islamic Finance Innovation 2025

Time to shine: Can Europe’s capital markets take centre stage?

Thanks for your interest in Euromoney!
To unlock this article: