The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Foreign banks fight on in US DCM

Competition in US debt capital markets remains fierce despite pressure on European banks to retrench from capital-intensive business lines. Faced with regulatory and funding headwinds, European banks insist they are staying put, and other non-US banks are joining them in the world’s biggest debt market.

During the European debt crisis, there were flashes of hope that the European banks were going to retrench from the US debt market. While there were some pockets of lending that they left, in the end the competitive landscape did not change meaningfully," says the head of a debt capital markets desk in New York.

It had looked inevitable, with the higher cost of dollar funding, increased regulatory capital requirements and domestic pressure to reduce risk and return to core businesses, that the European banks would be forced to scale back in or exit from the US debt capital markets. There has been some scaling back by some European banks, for sure. But the expected exodus never came. Instead, over the past 12 months, the European banks have been redefining their strategy in US DCM. They have been picking their niches based on either costs or expertise and with a renewed focus are out wooing clients.

They are not alone. If anything, the competition in the US DCM market is even fiercer than ever, say market participants, with new entrants adding pressure.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree