A crackdown on bank lending similar to regulations have not barred corporate funds from plunging itself into the loan markets. Many firms are actually favoring seeking funds over the bond market, which is conflicting with what the data shows during volatile markets.
The conclusion was reached during a symposium held in Liverpool this week where the treasurers of major FTSE corporations underscored the fact that even when banls are focusing on capital building, companies are still willing and able to reach out and get funding support from existing financial institutions.
Many treasurers still see that relationship lenders are still reliable even during times of trouble as public bond markets are exposed more directly to macroeconomic headwinds, making them quite unpredicatable.
Thomson Reuters data indicate that the year-on-year European corporate bond issuance has risen by 62% in 2012. This compares to the 37% slump in volumes of corporate loans in the same period due to the decrease in bank liquidities.
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