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. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Corporates seek to cover their embarrassment

These are not happy times in corporate credit. Accounting and trading scandals, miserable results and defaults have produced dire results for investment-grade issuance. Now finance directors are doing their utmost to avoid suffering humiliation in the markets.

As one debt capital markets banker remarks about the world's corporate bond issuers: "Nobody wants to be caught on the stage with their pants down." It's too true - when the market and media are obsessed with the latest accountancy scam, earnings restatement, ratings downgrade or liquidity scare, avoiding a simultaneous bout of pant-dropping and limelight-hogging in the corporate credit markets has been a major concern for all finance directors since the beginning of the year.

But that was before the week beginning June 24, when a volatile six months came to a head. First there was the news that France Telecom had been downgraded two notches by Moody's to the brink of junk status. Then on the Tuesday WorldCom topped this with the news that it had overstated profits by $3.8 billion in yet another huge accountancy scandal. What followed was something near a global panic. Telco spreads were the worst affected but many sectors took a hit. Since then the market seems to have bumped along with alarming regularity from one credit disaster to the next. For finance directors, avoiding the resulting detritus scattered through the market is now almost a full-time occupation.

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.


Unlimited access to and

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


Unlimited access to and, 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


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