In our first Debt Market Update for 2013, Fenton Burgin, a partner in our Debt Advisory Group shares his views on the key themes that he believes will be the main drivers of activity in the European debt capital markets over the next few months.
- Markets are moving into a ‘risk on mode’ as investors shift significant elements of their portfolios out of low yielding Government fixed income securities into corporate bonds and equities.
- In the UK, more companies are adopting less conservative balance sheet strategies and are cautiously re-leveraging, utilising cash balances and debt to finance expansion and investment that will bolster business confidence and, potentially, increase activity in the M&A markets.
- Credit conditions are generally easing as a result of the Bank of England's Long Term Funding for Growth programme and recent wider European moves to relax the implementation timetable for the new European bank capital adequacy regime.
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