Corporate funding faces uncertain future
February’s volatility has shown that the markets may not always be there for the financing that corporates want to do and that the borrowers may not always be there for the financing that the markets want to do. Financing could be about to change – a lot
Life as a financial journalist can often be confusing.
Sitting across the desk from one senior investment banker in the City of London in March things look pretty good.
“There is a relative dearth of things to be worried about,” he beams. “We have gone from event to event one after the other and have had the market conclude that each event is a non-event.”
Then things take a somewhat metaphysical turn. “If an event occurs and nothing happens in any financial indicator anywhere in the world, then it was not an event,” he declares.
After a calm, event-free ride to Canary Wharf, Euromoney then catches up with Citi’s global head of credit products strategy, Matt King, and a very different conversation is had.
“There is a great deal to be worried about,” he warns. “There is extreme fragility – investors are being herded into a technical that they don’t believe in. I expect more vulnerability and weakness from here.”
Matt King, Citi
This is emblematic of the market: there is no consensus over what on earth is going on.