Go to the Globe and Mail homepage

Jump to main navigationJump to main content


Report on Business


News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

Europe's corporate bond market shows signs of life Add to ...

Europe's corporate bond market is showing a glimmer of hope for borrowers, as even the continent's beleaguered financial sector is finding a warmer welcome.

With markets in general a touch more optimistic to begin 2012, borrowers took advantage.

Wednesday was the busiest day for corporate bond sales in Europe in a year, and notably some of the issuance this week is coming from banks. So far this week, there's been a bit more than €10-billion of senior unsecured bonds sold by banks.

"It's not a mad dash for cash by the non-financial corporate sector either, in order to take advantage of - and satisfy - a crazy investor grabfest, but we're seeing a steady addition of risk surprisingly across most of the corporate credit spectrum," said Suki Mann, a strategist at Societe Generale, in a note to clients.

Among the borrowers were automakers BMW and Renault. BMW sold bonds and had orders for almost three times what was on offer.

Report Typo/Error

Next story


In the know

The Globe Recommends


Most popular videos »


More from The Globe and Mail

Most popular