The debate on the need for and scale of bank de-leveraging has been put firmly back on the agenda recently, and this time it has been driven by a combination of researchers, regulators and investors. In this Market Insight we consider recently presented analyses and suggest what corporate borrowers can do – and many are doing – to proactively manage their way through a de-leveraging bank market.
As another eventful year – or, more accurately, a relatively uneventful year compared with the disasters of 2008 and an eventful one in its surprise April-to-October rally – draws to a close, we pause to consider what spread environment our debt issuing clients should be expecting for the next 12 months in European securitised credit.
In this update we ask ourselves the question whether the European securitisation markets are likely to follow the tentative revival of its big brother, the US. What are the drivers behind the US revival, is it likely to be sustained, how far has Europe come along compared to the US and what does the market have in store for European Issuers?