This page contains a Flash digital edition of a book.
ifre.com


June 2010 | ifr Top 250 Borrowers | 1 IFR TOP 250 BORROWERS


months from May 2009 to April 2010, the scope of this report, the debt markets have started to resemble something like their old selves: loans first became widely available, and then, increasingly as the year went on, even became competitively priced. Bonds had an even swifter return to prominence. But it has not all been good news. Towards the end of the period, the first tremors of what could be the next financial earthquake were felt, as Greece found itself on the brink of economic collapse. Concerted European action seems to have averted catastrophe, though the cost of bailout remains to be seen, both economically and politically. And even with the Greek question still not completely resolved, attention has turned to other European peripheral markets: Italy, Ireland, Portugal and Spain. Another bailout might be a bridge too far for some. For now, indications are that austerity measures, coupled with the will demonstrated by the Greece bailout, have done enough to soothe many investors’ nerves. But it remains unclear to what extent markets will return to their pre-crisis states. The chastising experiences of the last three years will take many years to forget, by which time the regulatory environment is likely to have been transformed out of all recognition. The developments in the structured finance market, which has borne the brunt of regulators’ ire, are indicative of planned changes that will occur in other parts of the market, from derivatives to accounting. From an industry perspective, one of the biggest risks now is ensuring that regulation is tailored to suit its stated purpose: protecting economies from a reoccurrence of the crisis, and ensuring companies, sovereigns and others have access to the financing they need to operate. Politicians have been showing an increasing inclination to use regulation as a stick with which to beat banks. While that may be a vote-winner in the short term, it is less likely to win approval if it has the unintended consequence of making financing vastly more expensive or harder to secure. The other main risk is that, with so many countries and corporates tightening their belts simultaneously, the world is in for a period of severe economic hardship. In the loan market, banks are already being forced to compete fiercely for an evaporating pool of mandates, explaining a rapid deterioration in pricing. With borrowing totals this year well below those seen the year before (KfW led the borrowing this year, with US$87.86bn, compared with Freddie Mac’s US$144.65 last year), a continuation of this downward trend looks entirely possible.


FOREWORD A


sense of euphoria was to be expected in the year that followed the 2008/2009, when banks and borrowers had to work hard to keep their heads above water. And in the 12


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52
Produced with Yudu - www.yudu.com