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.

Credit crunch: Power shifts to the buyers

The credit crunch has precipitated a shift in the balance of power in the European debt capital markets.

Before the summer, almost every deal that came to market was heavily oversubscribed, and all a bank needed to do to attract a flood of subscriptions was to open a book. It was a seller’s market. Now, though, it has become very much a buyer’s market. "It used to be that the power in the debt markets lay with the borrowers," says Demetrio Salorio, deputy head of debt capital markets at Société Générale. "Now we are getting into a market where investors have more power."

There are various causes of this new dynamic. Not least are investors’ concerns about the credit quality of financial instutions, which has led to dramatically wider credit spreads for this sector. Furthermore, the decline of leveraged investors such as SIVs, and retrenchment by others such as bank treasuries, has left the classic traditional investor – so-called real money – firmly in charge.

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 acces 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

£68.33 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