German Schuldschein Debt Market’s Lead Banks Look to M&A for Volumes
- International firms to return even as Orpea saga still looms
- Pricing to be higher than bonds as investors stay selective
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A downtrend in issuance for German Schuldschein debt recently contrasts with the strong start to the year, which boasted double-digit percentage growth in the first quarter, including a record €2.7 billion ($2.95 billion) transaction for Porsche Automobil Holding SE.
Major market players attribute the fall in sales to borrowers opting for the more attractive corporate-bond market, where they can get better rates for longer maturities and are able to raise larger deal sizes. A bitterly-fought restructuring case involving French care home operator Orpea SA has also dented investor confidence.