When the banks won’t lend you money, head for the international debt markets.
Western European banks have been withdrawing funds from emerging Europe because of capital issues at home for the past few years, alarming international lenders so much that they formed the Vienna Initiative to help the region.
But those corporates that couldn’t borrow have been making use of the red-hot emerging corporate bond market instead.
Panellists speaking at the Emerging Market Traders’ Association annual corporate debt forum yesterday said emerging corporates will still rush to the debt markets this year, after record levels of issuance last year, even though the pace may be a little more subdued.
According to Polina Kurdyavko, fund manager at BlueBay Asset Management, caution in the financial sector means that: