European regulators are working to develop a more transparent and less costly class of asset-backed security (ABS), but their efforts have so far excluded corporates’ favourite short-term financing vehicle of asset-backed commercial paper (ABCP).
Given the recent epidemic of data breaches, a proposed new Data Protection Regulation from the European Union (EU) is underway. Data protection is an underestimated topic and corporates that haven’t already started preparing themselves for the new rules need to move quickly.
The corporate bond market in Europe has deepened, broadened and expanded since the financial crisis. Its further development in 2015 will be shaped by three broad themes: the recovery of lending appetite by banks; investors’ search for yield; and weak underlying demand for funding.
European corporates are looking to the bond market to satisfy their financing needs - and the market is still happy to provide them with funding; in some cases even when the yield is negative.