The number of global and Euro-CP programmes to have been signed in the market has reached 1,000. But only five programmes have signed since the end of July, and this year to date has seen just 33 signings. The average for the same period over the previous five years was 56. Barry Gartner, head of Euro-CP at Barclays Capital, is unperturbed however. He says: "At the start of the year you always wonder where the next 40 mandates are going to come from. But they do appear, it's just that some issuers take longer than others to make their minds up and finalize the documentation. Most banks will gain on average 20 or 30 mandates during the course of the year. There's plenty of business still out there." But comparing this year to previous years may not be the best way of appraising the market. Gartner explains: "There was a rush in 1999 because everyone wanted a programme in preparation for the arrival of the Euro, and German banks were suddenly allowed to use CP so they all signed shelves too. It meant that 2000 appeared comparatively slow, and this has followed on into this year." One sector in particular is being cited as a potential business-bringer. Gartner says: "Perhaps an urgency will come from the US market. They've all been very happy with their US facilities but, post September 11, some may be beginning to think that $20,000 for a Euro-CP programme is good value for the additional funding flexibility."
October 05, 2001
