Europe’s Banks Need Government Life Support
February 9, 2009, Bank Loan Report

Despite government assistance, European banks have severely cut back on their corporate lending. However, there has been some pick-up in the high yield and equity markets.

White & Case recently advised on Fresenius's high yield bond issue and Christopher Kandel, a partner in the Bank Finance Practice at White & Case in London, says its success is an indication "levereraged corporates" may be able to "access funds."

"The fact is that there is a huge refinancing need, but there's also a large gap between those requirements and bank lending capacity," Kandel said. "It looks as though in a number of cases the gap can be met by high yield, mezzanine and equity, so I think that's going to be the flavor of the lending market for the next few months."