European corporate credit market recovers health of pre-crisis days

The European corporate credit market is returning to pre-crisis levels, despite the concern surrounding sovereign debt markets in the region, according to Steven Blakey, the CEO at London-based European Credit Management (ECM).

"There has been a lot of noise around the sovereign market recently, which has hidden what is happening in corporate debt," says Blakey. "Corporate treasurers got a big shock in 2002 as debt climbed, and post Enron and WorldCom, debt for even investment grade companies was seen as dangerous. They became very much more conservative and reduced debts levels considerably." But since last year, issuance has been picking up in Europe, until the regional market, usually playing catch-up with the US, can now claim to be a significant player. "Credit spreads blew out post Lehman and nothin...