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. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

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?

Euro Elephant

 

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.



Goldman Sachs’ top European executives, Richard Gnodde and Michael Sherwood, were moved to publish an article declaring that “Europe needs a market-based financial system that allocates capital efficiently to households and businesses from Lisbon to Ljubljana — and that means it needs not just a banking union, but a capital markets union, too.” The EU Commissioner for Financial Services and Capital Markets Union, Jonathan Hill, clearly has some heightened expectations to meet. His job will not be an enviable one. CMU, left to plot its own course, runs a real danger of being all things to all men.




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