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Bond issues set £100bn record
Nick Goodway, Evening Standard1 Sep 2008
A record 100 billion of new bond issues this month are being forecast by investment bankers across Europe.
This month is traditionally one of the most important in the new debt market calendar and sets the tone for the rest of the financial year.
But bankers warn that the record demand by corporates, financial institutions and public sector bodies is being prompted by growing fears that it could become even more difficult to raise money as the credit crunch continues.
In August some 10.5 billion was raised in euro-denominated bonds, the highest total for the month since the single currency was introduced in 1999.
Bankers say that the pipeline for September is stronger and could well set a record. But they also warn that the issue of new bonds now and in October could be disrupted if third quarter profits from Wall Street investment banks are worse than feared.
