Why European equity-linked isn’t what it used to be

This year’s convertible bond issuance in the US and in Asia has just surpassed 2017’s. Both regions look on track to set 10-year records. But in EMEA the story couldn’t be more different. Volumes in the region are just 43% of last year’s total – and are down a third from where they were at this point in the year.

The simplest explanation for the regional divergence is rates. “In Europe we just haven’t had the same level of imperative for issuers to look at convertible bonds,” says Tom Swerling, head of the Europe and Middle East equity solutions group at Barclays.