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Breakingviews: Capital markets break cycle

Thursday, Jan 10, 2013 - 03:20

Jan. 10 - This financial crisis is different for the capital markets cycle. After recoveries in investment-grade and junk issuance, IPOs should pick up – but not this time according to Breakingviews.

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This is breaking news why this time apparently it's different from the capital market cycle and an IPO boom is not yet on the cards. Had to explain Robert Coke. So -- what Donna Kelley is saying is you've got this cycle investment grade debt recovery junk bond recovery normally -- -- -- pickup is on the back of the obvious saying. Whether that's -- Pakistan but that's not necessarily gonna gonna happen this time than that. While I think rule quite -- and quite hopeful that into some sort of recoveries on the while drool. We've seen that in the markets and we the first -- this is an equities dropped bombs it down. -- quite soft say you know we sort of there this thing that was sort of on a treadmill tools sort of sudden. Oregon and had a -- to if you like. To tip tip back to at times -- in the investment biking industry which clearly clearly has had a really tough time. One of the things that. If the -- repeated itself would race in Hudson -- that we have so much goes an optimist I would have an it company robbing it but that doesn't seem to pay that's exactly how -- And if we pick if we pick -- call the cycle as -- doesn't this piece from. Investment grade issuance yes it's pretty tough but it still looks. Pretty cool in fact I think it's below that the peak in 2007. The junk bond issuance also doesn't it surprise. But there is that but -- I think the critical difference here between those kinds of capital rising and not PLO's is that. Very largely. Values. John -- bond issuances of credit ages all replacement capital. All right so people love replacing money that they needed -- is about new ventures about raising new money. I think it's. I think big question to wonder whether particularly in developed markets companies need extra capital. Now that we because they just run out of line did that could be because that too scared what -- cells might think that being too adventurous. But it might also excited and almost -- on one of the really big issues that is in the market's movement as you know what these. Then the focus develop markets. -- emerging markets and -- Actually what capital markets mine I have to get that hedge round his -- yeah looking much more towards -- And those possible emerging markets testing need capital concede. And the Nevada -- countries particularly the -- to donate the money so it saying no here come. Is notorious -- are you saying we all -- -- -- in and out of it about markets well spent. I think the big question marks about odd because in in in emerging markets as well. But it -- -- emerging markets there is this little thing that they do need to cap on it so. On PA's octaves should be happening -- shortened and markets went on this should be. Front Robert many thanks to back you can read that -- of course on the breaking news web sites. From all -- financial insight what's right US -- TV show every day properties and 1730 GMT. I'm -- office sources.

Breakingviews: Capital markets break cycle

Thursday, Jan 10, 2013 - 03:20

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