The pace will be thus less argued in 2006 13Their courses have even lost more than 20 The remuneration of managers must be capped It is in our interest but also that of the RussiansAnd yet the dollar appreciates as a well rare4 in 2005 some economists saw a finish 35 hoursAll play today with the codes of the sportThis time a global cooperation is neededBerlin pushes the purchasewith des cleanvehiclesThe task is immense but the path is narrowAfter a week of blackout, the euphoria. Only the Sungard software Editor is was risky, "white" week that followed the collapse of Lehman Brothers, to issue 500 million dollars of high-yield bonds to finance the purchase of French GL Trade. But after five days without credit, analysts predicted last week the rush of companies on the markets to refinance themselves, after the announcement of the US $ 700 billion rescue plan: they anticipated $ 25 billion of emissions and up to 100 billion in October. An excess of optimism inversely proportional to the magnitude of the crisis.
In September, 19 billion dollars in debt senior bond was issued, is half of the expectations of analysts. At the same time, in 2007, $ 83 billion had been issued, according to Bloomberg. The prices charged by investors reach their most top since 1998. Among the latest 'corporate' Europeans to be released before the bankruptcy of Lehman Brothers, the Dutch KPN telecoms operator paid 175 points of base over mid-swap (850 million euros) and Saint-Gobain, 270 points from base to 5 years (750 million). Worse, Vivendi has waived September 10 issue 600 million euros of debt at 7 years or request on the part of investors.
Classical credit valve
"In the first half, the bond market will have been opened only two months, between April and may." As early as June conditions have deteriorated and only emissions on the short segment of the line found takers. "The market is reopened late August but this lasted only a few days", shows Hervé Labbé, Director of the Hall of France Telecom market, which was issued in may EUR 2 billion with a "spreads" (difference with the rates of "swap") relatively low (90 and 110 basis points on the slices to 6 years and 10 years). "Until March-April, when bond euro markets were almost closed, we conducted a few"taps"(Editor's note, small prints) on existing bond strains." To be finance, companies such as France Telecom or Lafarge have also resorted to German broadcasts called "Shuldshein." "These emissions offer competitive remuneration relative to the bond market." "They allow also to investors, for most of the banks, do not have to recognize in market value of their investments in"shuldshein"", said Patrice Tourlière, responsible for funding and cash of the Lafarge Group.
So far, the window offered by the bond markets, weighing 90 refinancing of corporate programs, in part could be used valve to classical credit. If debt bond emissions are packed in a year in the first half of 74.6 billion EUR 80.9 billion, bank financing to companies "investment grade" were dropped from 480,8 billion to EUR 364,7 billion. Bank credit have been most directly affected again by the crisis than the bond markets.
Tensions on the volumes
Catch in the throat by soaring costs for liquidity, their difficulty of refinancing in the markets and the reinstatement of assets in their balance sheet, banks have mechanically less latitude to lend. At best, there is an effect price as at the beginning of the year. Lafarge was managed then to loop a syndication of EUR 7.2 billion for the purchase of Orascom, a "spread" for a range to 5 years of 72.5 basis points. "Today we we refinançons to significantly more expensive conditions yet." May be these conditions as a natural adjustment of the cost of the credit after those particularly exceptional and 2006 until mid-2007. "But they also reflect the climate of crisis in the financial markets," judge Patrice Tourlière. According to a study by the Bank of France, between June 2007 and June 2008, the cost of credit to businesses to is added by 60 basis points, when interbank rates have experienced a resurgence of 80 basis points.
But now, tensions are felt on the volumes. "If the term is taboo, we are in a"credit crunch"." "There is nothing morally wrong, it is mechanical," indicates without detour a specialist Credit Union Bank, reflecting "work to constant envelope for clients of the Bank." "For the new, it is much harder." De facto, he adds, "a number of companies have simply changed their expansion or acquisition projects." "If previously we could finance in two banks 10 billion euros, it takes five or six today, and these five or six are not necessarily present on the market."
Reduction of envelopes
Tensions from the syndication of Pernod Ricard in may for the acquisition of Swedish V & s. "the operation is not excessively well placed, had to go to the forcing," indicates a banker. Pernod Ricard had to pay 30 basis more points (155 points base to 5 years) and reduce its envelope of EUR 500 million to complete its borrowings of 5.5 billion euros and $ 10.1 billion.
"It is clear that the banks are brought to reduce overall coats of credit and that these reductions will be particularly disadvantageous for small businesses," said Gerard Soularue, Treasurer of Danone, Honorary President of the Association française of the treasurers of company (AFTE) and Advisor to the Bank of France. "We reluctant facto money with a business seeking a bilateral credit line of comfort, says a"senior banker"French." We are more selective, demand more compensation in business volume and make credit more expensive.
Banks try to manage to the tighter limits of capacity by off-balance sheet solutions. 2.125 Billion euros of Maxit acquisition, Saint-Gobain received a syndication, but with vocation to be replaced by the bond financing. "The banks do not like too long stay glued with unionized credits", reflects a professional. However, even on this type of financing, banks themselves today more reluctant. "Bond markets can close as two weeks ago, these operations remain very sensitive to lead," judge a banker.
Price adjustment
Paradoxically, the securitization is the taste of the day. "We are working on a funding relay for an acquisition that will go out in securitization," thus indicates a "titriseur". With the inflation of the credit and the pressure on bank balance sheets, securitization is once again competitive. "Bank credit return to 20 or 30 basis points more expensive than securitization", continues this specialist.
In the first half, these tensions are are not translated in the French figures. The production of business credit "investment grade" increased by 33.1 billion to $ 50.2 billion between the first six months 2007 and 2008. "Arbitration of capacity do not affect big companies with healthy balance sheets." "Adjustment is by the price," said Jean-Luc Parer, markets Director of capital and financing of CIB. EDF, which comes from completing a syndicated credit of 11 billion pounds, was able to convince its banks.
