Fixed Income Becomes More Popular in European Markets

(April 8, 2010) – A recent study proposes that the fixed income market in Europe is set for unprecedented growth, with firms increasingly favoring fixed income markets and debt issuance over traditional bank loans to raise capital.

“Capital constraints, economic uncertainty and increased levels of caution characterize the current attitudes of institutional investors,” said Peter Christmas, chief relationship officer at Pershing Limited. “The emergence of new participants and new strategies is significant in the long-term development of the fixed income marketplace.”

The volume of fixed income instruments have clearly gone up in the last few years, said Christmas to ai5000, adding that new merchant banks are emerging to offer clients an agency and advisory service.

Christmas said fixed income has traditionally been more popular in the US, where fixed income and electronic trading is better understood by investors.