In an article for leading treasury magazine, GTNews, S&P Global Ratings’ director of mid-market evaluations, Alexandra Krief, explains why alternative lending markets are experiencing promising growth in Europe. With bank lending constrained, Krief shows that the European private placement (PP) markets and German Schuldschein in particular are benefiting as a result. In fact, companies seeking funding alternatives helped drive total debt issuance in 2015 to nearly 80% more than seen the year before, re-directing business from the American USPP market as it went.
However, there is still much room for improvement in Europe – Krief argues that increased standardisation when it comes to transaction documentation, along with greater transparency surrounding legal implications, are necessary if these markets are to build on the progress made so far.
Please read the article in full here.