Bonds replace loans as company finance favourite.

The article discusses the importance of the corporate bond market for investors in Europe. It states that the shift from bonds to loans in the region is patterned on the style funding system of U.S. However, in the case of Europe, banks have limited the amount of time they are exposed to corporate borrowers. It notes that bond takeout activity will grow particularly for merger and acquisition finance. It is observed that lending facilities in banks are becoming centralized while the generous benefits offered to corporate borrowers are being reduced.