Stabilisation of financial repairStabilisation of financial repair |
CFOs reported (bank) credit was cheap in the third quarter and, notwithstanding a small increase in cost, credit pricing remains fair.
Credit remains available, and the positive trend that started already in the second quarter of 2009 coming out of the deep recession, continues quarter by quarter.
In line with the improved credit conditions, bank borrowing is at present seen as the most attractive source of funding. Debt finance - whether bond issuance (corporate debt) or bank borrowing - remains firmly in favour. Equity issuance is still seen as a far less attractive form of finance.
The short term interest rate is generally expected to decrease. Only 10% of CFOs expect an increase of the short term interest rate.
Long term interest rates are expected to increase in the coming months. The expections have not changed in the past quarter.
