The credit crunch in Europe worsened over the summer as corporate bond finance issuance failed to plug the gap left by a sharp fall in of bank lending. Net lending by banks fell further in July as companies repaid more loans than they took out new ones. Loans outstanding contracted for a fifth consecutive month, by a net €25bn ($36bn). At the same time, July corporate bond issuance fell for the first time since March, by €20bn from June to €27bn. Bankers attributed the fall to seasonal factors.

This entry was posted by Gwen Robinson on Monday, September 14th, 2009 at 4:46 and is filed under Capital markets. Edit this entry.