Corporate issuers shelter from bond market storms — but for how long?
Unseasonal storms are lashing the European corporate bond market. It is not that investors have fundamentally lost faith with it, but the turbulence in secondary trading is putting both them and issuers off. Hence banks’ go/no go calls with potential issuers have nearly all led the issuers to hold their fire. But while it is a good thing they have choice in funding, they cannot hide from the market for ever.
With storms battering the global debt capital markets, it has not been an easy year for European corporate treasurers so far.
Market turmoil has led to wide spreads to compensate investors for the risk that new issues will suddenly widen in secondary trading.
Many potential issuers, feeling conditions are
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