Citi cuts 2014 corporate IG issuance forecast by €24bn
The first seven month of the year have been busier for corporate bonds than at any time since 2009 but with many firms having finished refinancing for the year and macro risks abounding, issuance might have peaked, said market participants. Citi, for instance, this week advised clients to expect a less busy second half of the year, revising its investment grade corporate full year euro issuance forecast down to €210bn from €234bn.
With year-to-date issuance of €353bn, 30% higher than in the same period last year, Joseph Faith, a credit strategist at the US bank, said that the majority of refinancing had already been done.
Faith also blamed uncertainty arising from geopolitical risks such as the conflict in Ukraine and the ...