Financing the Corporate finance: equity out of favorDeloitte Belgian CFO Survey Q2-2010 |
The 2010 CFO survey reports a decrease in the attractiveness of equity and – to a lesser extent - corporate debt as a source of funding. Since the start of the survey, bank borrowing has reverted from the least attractive form of financing to an attractive one, despite its high perceived cost.
Despite the small decrease of the overall attractiveness of corporate debt, most CFOs still think it is a good time to issue corporate debt. The picture is different for equity, which lost popularity and turned to the lowest level since the launch of the survey.
The average CFO will likely issue corporate debt in the next 12 monthes. Equity is at present completely out of favor for most surveyed CFOs.