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SMF Blogs > SMF European Analysis > December 2008 > In Europe, a credit market thaws a bit

In Europe, a credit market thaws a bit

WSJ reports markets for corporate debt in Europe are showing signs of reviving from the shock delivered by the collapse of Lehman Brothers in September, as borrowers wake up to the fact that funds are available if they are willing to pay a steep price. European corporate borrowers, eager to get their hands on cash before year's end, tapped investors for nearly €10 billion ($12.7 billion) last week, half of that on Thursday alone, shattering what has traditionally been a quiet period while the U.S. is on Thanksgiving break. That brought the total raised during the month to more than €23 billion, making November the busiest month since June 2003, according to data from French bank Soci?t? G?n?rale. The fact that such cash is available for the tapping is evidence that the financial crisis has backed away from the direst possible consequences -- such as a near-total freezing of credit markets and an ugly scramble by companies for funds. Still, the high prices that companies are paying make clear the market remains in a state of stress.

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Posted: 12/1/2008 9:13:50 AM by StockMarketFunding | with 0 comments


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