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. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Capital raising: Complex dynamics propel innovation

There's plenty of capital available to borrowers at attractive prices. But the headline numbers mask the complex dynamics at work.

Capital raising poll 2005


THE EUROPEAN CREDIT market's growth shows few signs of slowing in the medium term despite the longevity of the bull market and clear signs that structures and valuations are being stretched beyond historical limits. Indeed, debt capital markets bankers predict another upsurge in credit as a confluence of factors conspires to feed a party that continues to flourish. Whatever the sector – investment grade, high yield, emerging markets or structured credit – or the sub-sector – financials, corporate or public sector – the picture is largely the same: investors are still in buying mode and they don't mind paying top prices.

In many respects, debt capital markets have never been so straightforward. Spreads are tight, yields are low and the regulatory and economic environments offer constructive conditions for borrowers. Meanwhile, heightened liquidity has pushed the hunt for yield to the forefront, making it the overriding investor theme over the past 18 months. This has manifested itself in increased demand for duration, greater acceptance of subordination, appetite for riskier standalone credits and/or various forms of structured product.

Making hay

It is sometimes difficult to distinguish secular growth in fixed-income product, which has long been forecast as part of the maturity process of financial markets, from signals of a frothy market that is in dire need of a correction.


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