Bond Issuers Are Living in the Land of Milk and Honey
Syndicated bonds are booming in Europe, making this a golden moment for governments raising money and for the investment banks that run the sales.
A better place, for now.
Photographer: /Hulton ArchiveEuropean sovereign debt issuers are in the land of milk and honey, racing to get as much as possible of this year’s issuance completed before the summer lull. With so much monetary stimulus sloshing about, governments even have an eye on getting ahead of next year’s budget plans as well.
The European Central Bank’s latest 600 billion-euro ($683 billion) batch of quantitative easing, and the European Union’s (still to be agreed) pandemic recovery fund, have created perfect conditions for a debt-raising bonanza. Given the deep uncertainty about how quickly economies will rebound from the coronavirus lockdowns, and whether there will be a second wave of Covid-19, it would be foolish for issuers to miss out on a golden moment.