Debt crisis commentary: HSBC, BNP Paribas
The sovereign debt crisis in Europe has all but closed the debt capital markets, with new issuance limited to only a few banks. HSBC's global head of debt capital markets, Spencer Lake, talks to Euromoney about what this will mean for European banks and companies, and he discusses what other alternative funding sources will be open to borrowers in the global capital markets.
Access to capital markets for European borrowers
Implications for cost of funding
Funding options in the global capital markets
Threat of solvency problems in Greece and the threat of contagion across all of Europe have deadened demand for European credit. Bank debt markets have remained pretty much shut for all of April and May and corporate bond markets have been subdued. What are we dealing with here? Is this a repeat of the liquidity crisis we saw in 2008, or will the EU's €750 billion aid package help resolve the problem? Martin Egan, global head of primary markets, BNP Paribas speaks with Euromoney's Hamish Risk, markets editor on whether the debt capital markets can function amid the sovereign debt crisis.
Will 2010 be a repeat of 2008's liquidity crisis?
When will banks be able to access the debt capital markets?
How will the the sovereign crisis impact corporate borrowing costs?
Can loan markets sustain corporate funding markets while while bond markets remain closed?