Post-crisis regulation will continue to be a key
driver of structural changes in funding across Europe in 2015,
according to rating agency Fitch.
Bank disintermediation has been a key trend in
Europe, with companies that would once have looked to banks for
funding increasingly turning to the region’s
Constrained bank balance sheets, resulting from
Basel III’s beefed-up capital requirements, and
receptive financial markets, have diversified funding options
for European companies, continuing the broader trend of
disintermediation of corporate funding in Europe.
In the last year we’ve started seeing
many deals being funded entirely by bonds, said Monica Insoll,
managing director in Fitch’s credit market
research group. "Only a few years ago you’d never
see that in Europe," she added. "This is also a sign of how the
bond markets are maturing and becoming a real competitor to the
"2014 had the...