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Trend towards More Bonds in Corporate Financing

Published: August 3, 2011; 15:32 · (Vindobona)

Companies will increasingly rely on the capital market as bank loans are becoming more expensive due to Basel III and stricter liquidity requirements.

Trend towards More Bonds in Corporate Financing / Picture: © Calculation

Corporate financing has undergone changes since the start of the economic and financial crisis. The future will bring increasing importance of the capital market, after companies were mainly financed through bank loans in the past. “Stricter Basel III capital requirements and new liquidity rules for banks will result in higher cost of loans”, explained Karl Sevelda, Deputy CEO of…

This article includes a total of 226 words.

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