Fitch's 'Inside Credit': U.S. Corporate Bond Issuance in Europe and Global Credit Growth

The latest edition of Inside Credit features Fitch Ratings' European Corporate Bond Monitor, focusing on U.S. corporate bond issuance in the European markets, and the outlook for global credit growth.

U.S. corporates are growing their presence in the European credit markets, enticed by the increasingly advantageous funding conditions. Issuance in 2014 grew 40% year-over-year as corporates exploited cheaper funding in Europe to refinance.

"Despite an increasingly negative EUR-USD cross-currency basis swap since the start of the year, this is more than offset by the corporate spread differential between the two markets, and actual and expected issuance of euro-, Swiss franc- and sterling-denominated bonds rose by 2.4x year-over-year in 3M15," says Michael Larsson, Director, Credit Market Research.

This week's edition also looks at global real credit growth, the focus of the bi-annual Macro-Prudential Risk Monitor - now in its tenth year. Credit growth, despite increasing to 4.8% in 2014, remains in the still-weak 4-5% range.

"Credit growth finally turned positive in the developed world in 2014 after three years of contraction," says Richard Fox, Senior Director, Sovereigns. "However, macro-prudential risk indicators continue to trend lower with the highest risks largely confined to Emerging Markets."

Other topics covered in this week's edition of Inside Credit include:

-The likelihood and potential impact of a 'Grexit'

-Greek banks' chart of the month

-Oil trading houses to benefit from volatility

-Hit to CIS sovereigns from Russia slowdown varies

-Is Russian corporate liquidity adequate?

-LatAm leverage finance credit face a difficult operating and market conditions

-Money fund managers show varied appetite for ABCP

-U.S. mid-tier banks outpace major banks in loan growth

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