Borrowers: All you need is spread

The credit market in Eurobonds is becoming deep and varied. For the first time, corporates - including lower-rated borrowers - are driving the market. Securitization and hybrid debt are taking off as well. But which firms are best placed to sell these products to European investors? Marcus Walker reports.

“This is probably the most exiting, innovative period in the history of the Eurobond markets,” says Charlie Berman, speaking on the edge of Salomon Smith Barney’s vast trading floor above London’s Victoria Station. Salomon’s head of European debt origination explains: “The exiting thing is the creation of a credit market to rival the US. It’s not a complex idea, but it’s a big idea. It’s all about companies no-one has ever heard of generating interest among investors.

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