Financing the corporate sector
Deloitte Belgian CFO Survey Q1-2010
Despite the increase in the overall attractiveness of corporate debt and equity, CFOs perception as to wether it is a good time to issue corporate debt or equity has not changed accordingly. Though the balance of CFOs think it is a good time to issue debt, equity remains out of favour.
CFOs responded to the recession by reducing the financial risk on their balance sheets. The process of risk reduction - cutting corporate debt levels, increasing liquidity and cutting capital expenditure – seems to be drawing to a close.
The balance of CFOs feel equity and government bonds are perceived to be adequately priced. Since the date of the close of the first quarter 2010 survey, the markets have however dropped significantly. Commercial real estate is considered to be overvalued.