German corporates pin hopes on tax reforms

Much has been said of the huge growth potential of the German corporate bond market. Some have even likened its growth to that of the internet. But in terms of volume of issuance, the German corporate bond market remains tiny compared with Germany's GDP. However, with the European M&A boom showing little sign of slowing down and with Germany's corporates leading the way in terms of restructuring - boosted by tax reforms concerning the reduction of capital gains tax on corporate restructuring - the key ingredients for a rapidly expanding market are finally in place.