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.
Banking

Even governments face supply constraints

The Future of Capital

Top quality issuers boost debt capital markets

Forget the broken banking system


While the global banking system, households and corporations, all now struggle to reduce borrowing, it has been left to governments to lever up to compensate, borrowing heavily to raise funds to support the liabilities of weakened banks and to provide economic stimulus. Away from emerging markets that fund heavily in foreign currency, there is a widespread assumption that government debt is risk-free.

That view might be challenged in the capital markets this year, as investors price in huge new supply.

Roberto Isolani, UBS

"Credit investors have never been worse off. They’re licking their wounds. So a great deal now hangs on traditional rates buyers"

Roberto Isolani, UBS

"If you look at the supply side of the equation in the debt capital market," says Roberto Isolani, joint head of global capital markets at UBS, "we are still adjusting to the disappearance of the leveraged investor base that previously drove spreads to their historical lows.


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