Asset managers step up as banks shy away from corporate lending

Funded 40% of IPOs

Asset managers are accounting for the bulk of corporate lending, having acquired nearly two-thirds of corporate bonds issued since the financial crisis.

According to the Financial Times, there is a growing dependency on asset managers for funding, as banks shy away from lending to companies following new regulation.  A recent study revealed UK asset managers are estimated to have funded 40% of IPOs and 41% of equity issues in 2013-2014.  The study was commissioned by the Investment Association and carried out by Oxera, an Oxford-based economics consultancy which interviewed 12 large fund houses, including Schroders and M&G, and three investment banks. SLI's Curran- Avoiding the corporate bond 'red herrings'  Luis Correia da Silv...