Syndicated loan recovery scotches disintermediation theory

Last year’s dramatic reduction in syndicated loan volumes in Europe was viewed in some quarters as part of a broader trend away from loan financing by borrowers. But with plenty of large corporates raising capital via the loan market in recent months, has the disintermediation theory been overplayed?

hand-euro-cash

Reports of the demise of the loan market, it seems, have been greatly exaggerated. At the beginning of 2010 it looked as though a significant and long-term structural shift had occurred in European corporate funding, involving a move away from bank lending towards wholesale debt markets.

In an article in this magazine in February (“A shift in the balance of power”, Credit February 2010, pp. 32–35), there was no shortage of bankers suggesting the move was permanent, pointing to the fact that

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here