FGA Capital’s auto success fuels hopes for more mezz
FGA Capital demonstrated strong appetite for Italian mezzanine debt this week, selling €22.5m of single-A rated bonds well inside guidance and fuelling hopes that more issuers can gain capital relief from selling subordinated notes.
One of the intended effects of the European Central Bank’s backing of the ABS market is to stimulate the sale of mezzanine bonds, which will help free up capital at banks for more lending. Mezzanine paper is often retained by issuing banks, but that is changing.
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