European companies are increasingly using bonds as a funding source
unprecedented growth in popularity of corporate bonds in Europe, observed in recent months, could slow. However, bonds are likely to still remain the preferred source of financing for European companies, writes the newspaper The Wall Street Journal.
Historically, that European companies have relied more on bank loans than on the bond markets, in contrast to American corporations who prefer to issue bonds. However, during the crisis - because of paralysis of the market of bank loans - bonds have enjoyed great popularity in Europe.
Since the early years of European countries (except Britain), not belonging to the financial sector attracted $ 318 billion on the bond market, which, according to Dealogic Inc., 45% more than in 2008 as a whole and more than any similar annual figure in the history of European bonds.
largest issuer of corporate bonds in Europe in 2009 until a Swiss farmkompaniya Roche, which has placed bonds for $ 30.6 billion to buy biotech firm Genentech.
According to JPMorgan, about 60% of the European credit investors are planning to fix or reduce investments in the bond market because of the uncertainty of economic forecasts, and renewed concerns about the financial stability of the issuing company.
Nevertheless, many banks hold the view that the long-term trend away from bank loans to bond issues to continue.
Europe vs. United States
Review of the FOREX market for 01.07.09
Yesterday, a pair of Euro /dollar rose in the U.S. session to 1.4199
Victor Lozinsky prepared surrender
The ECB will keep rates unchanged, will have to consider other measures
Will any other loan?
The continued drift of the oil and gas sector in the paper does not allow for successful restoration of Russian market
The potential for reducing the cost of the shares of Sberbank is about 6.7% to 36.8 rubles
The nearest support for futures on RTS index is currently situated in the vicinity of 93 500-94 000 points
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