2012: Record Year of Debt Refinancing
Bloomberg reported that with rates so depressed, corporations, which typically refinance debt that matures in one or two years, issued replacement bonds for credit that’s due in four years, which doubled the potential number of clients for bankers.
According to data compiled by Bloomberg, corporate and sovereign borrowers issued $3.69 trillion in debt in 2012, generating $19.2 billion of fees for banks, both records.
Bloomberg quotes Jim Casey, co-head of JPMorgan’s global debt capital markets, as saying “2012 was so spectacular that it deserves a moniker: the Year of Refinancing.”
To read the entire Bloomberg story, click here.