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"The real issue around banks is about capacity. Banks will be wary of being sucked into too may large financings too regularly" |
The investment-grade corporate market has not been afflicted in the same way as high-yield debt and structured finance by the credit crunch. High-quality corporate credit markets have quickly reopened, especially in the US, where investors and issuers witnessed rampant volumes in August and September. The European market suffered from a more faltering start to the prolonged summer break. At first it looked as if AstraZeneca’s seven-year €750 million deal had revived the European corporate sector but the travails of Northern Rock put Europe flat out on its back – until the Federal Reserve’s rate cut, that is.
A return to roadshows
"There are windows of opportunity – this trade shows that if you do it well deals can get done," says Jean Marc Mercier, euro syndicate head at HSBC, one of the lead managers alongside Citi and Deutsche Bank. "It means doing a roadshow to meet the important clients, and getting a real book built.