In our latest Debt Market update for 2013, Fenton Burgin, Partner in our Debt Advisory Group, shares his views on the key themes he believes will be the main drivers of activity in the European debt capital markets over the upcoming months.
- Credit markets continue to be driven very positively by a combination of ultra-low interest rates, continued fiscal support and generally improving economic conditions;
- European corporates’ cash balances are at record levels and there is the real potential over the next 6 months for increased M&A activity;
- Lenders’ own cost of funding has reduced over the past 12 months by as much as 30% and this is now feeding through to the cost of corporate debt; and
- In a rapidly changing mid market lending environment there are now a wide range of alternative investors looking to replicate structures seen in the public bond markets.
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