IAFEI Quarterly - 34th Issue

In spite of the many incenves by the ECB, European

Central Bank, the loans given out by the European

banks are not materially increasing; since the middle

of 2014, the total volume is more or less unchanged.

The indebtedness of the corporaons, however, is

reaching one record aer another. The capital gap is

ever more filled out by the “non-banks”.

The market share of insurance companies, pension

insurance companies and other capital raising

instuons grows connually.

The polical support for the “disintermediaon” - key

noon “ capital market union” - allows to expect,

that this share will connue to increase further.

The classical way of the investors into the debt

capital of corporaons is the strongly regulated

and standardized market for corporate bonds. Sll

relavely unknown as asset class are in Europe the

so-called “Senior Loans”: Large loans, which are given

out by banks to corporaons, mostly without an

investment grade rang, and which are subsequently

syndicated.

Out of the offers out of this market segment,

specialized asset managers like Lyxor are creang

funds, and provide to their customers access to

this interesng asset segment. Diversified vehicles

with broadly syndicated European loans encompass

SENIOR LOANS

! THE BETTER HIGH YIELD BONDS

By SEBASTIAN SCHU, Head of Asset Management Sales Germany & Austria, Lyxor Asset Management Germany, Sub-

Group of Société Générale Group, Paris, France, from Börsen-Zeitung, Frankfurt am Main, Germany, August 18, 2016,,

arcle provided by the German IAFEI Member Instute GEFIU, Associaon of Chief Financial Officers Germany

GERMANY