The company raised EUR 300 million at age 8 to 9

The re-entry smiles issuers of debt. While the rate without risk, such as those of German State bonds, are low, the cost of business financing also reached historically low levels: the Iboxx index - which represents the average of the bond on all maturities yields - currently at 3.5. Investors demand is strong, those seeking compensation than that offered by secure sovereign obligations. The offering of securities is generally lower than in 2009. Under these conditions, the borrowers can afford to offer very low emission premiums.

Decline of well graded debt emissions

On the first nine months of the year, the market in euros, well noted bond ("investment grade") outside the financial sector fell by 60, 150.5 billion euros, according to Dealogic. Companies judged safe by the investors have been the first to take advantage of the reopening of the secondary market after the bankruptcy of Lehman Brothers. In 2009, they have lifted an exceptional amount close of 430 billion euros. Their current needs are therefore lower. When they use the market, it is mainly by opportunism, to take advantage of low rates. "Companies offer to investors of the obligations of the long term: for example, Areva has launched a loan for 10 years with a premium almost zero and France Telecom came on a maturity of 12 years with a premium of only 5 points", note Muriel Caton in RBS. Companies are interested also in more and more to a very long-term maturities (EDF issued for 40 years, GDF Suez to 50 years.), but they emit pounds sterling to target British pension funds.

Boom of the "high yield".

The standardization of the debt market is seen in the reopening of some segments, which were banned during the financial crisis. The speculative compartment ("high yield") is party to fight record volumes this year. At this stage, EUR 25.3 billion was raised, which represents an increase of 134 over the same period in 2009. "Investors who before not interested in this asset class are looking for a better performance", says Rodolfo Cacérès, in Tikehau IM. Already active this month, Continental yesterday issued two bonds to refinance bank debt. In this compartment, there among other companies owned by investment funds. It is for example the case of Picard, refinancing is done via the bond market last week. The company raised EUR 300 million at age 8 to 9.

Financial debt deflects, except the "covered bonds".

Senior and subordinate on the part of financial institutions debt emissions reach 385,9 billion euros since the beginning of the year, according to Dealogic. Representing a decrease of 25 over the past year. This amount is slightly higher than that of 2008, another year of tensions for the sector. Concerns about sovereign debt risk - held by the banksrepresented a brake this year. On the other hand, the "covered bonds" - the "secure" bonds issued by banks, mortgage-backed or loans to communities - continue to grow. Emissions are up 27, to EUR 208 billion, over nine months.

Reopening of the hybrid debt of enterprise

It is the great novelty of the re-entry. "Even if it only concerns issuers well noted in low cyclic tried sectors, the reopening of the hybrid market is a sign of normalization", provides Muriel Caton in RBS. RWE has conducted the largest lift of debt hybrid in euros (for a company), with 1.75 billion securities bearing an initial coupon of 4.625. In France, Suez Environment has reopened this market closed since 2006, with a transaction of EUR 750 million on securities whose initial fixed coupon rises to 4.82. Scottish Southern Energy and Santos also carried out operations of hybrid debt.