The primary market is then closed for a month

Despite some tensions at the beginning of the year, the sovereign debt crisis has truly affected issuers private in May. The primary market is then closed for a month. Thus, in the second quarter, European companies have borrowed almost 47 billion euros (all understood the markets currency), or 44 less than in the first three months of the year, according to Dealogic. The decline is more marked still for financial institutions, which have lifted well rated titles EUR 72.3 billion, representing a 59 drop.

Recovery which if primer, very fast in some respects, excludes an entire category of market players: the transmitters of the countries of southern Europe, in particular the Spanish and Italian. This is new for Europe: the credit quality of the private sector is now perceived "country risk". The evolution of the debt of one half to the other shows. Volumes by Italian and Spanish companies have melted respectively 50 and 28, while almost have stabilized their activity. The issue of Italian ENI, last week, has been of exception. The oil group lifted titles in 10 years EUR 1 billion, but by paying the same price as Suez Environment, which was 12 years.

Geographical discrimination

Given the sensitivity of the banking sector to the concerns of the States, there are also a strong geographic discrimination. "The return of financial issuers is sovereign risk perceived by the market", confirms Karim Mezani, at Natixis. "For the moment, we saw (BPCE, BNP Paribas) French, and Scandinavian, and Dutch and Germans, but no institution of southern Europe on senior and subordinated debt debt classic, more or less risky, Editor's note." Is very rare, an operation was aborted by Italy: that of Ubi Banca, which was to issue "bonds secured" (securities to mortgage or loans to communities), which are easier to place, as evidenced by the current frenzy on this segment.

"The problem is that the amounts to refinance in the banking sector are high this year," notes Stephanie Besse, at Natixis. Banks must find sources of funding at any price. On the other hand, it is not the case for non-financial corporations. Spanish and Italian companies such as those in Europe, took the advance year past and covered their needs for 2010.

Issuers who have access to the market are therefore an advantage. Including the France, which easily attracts the cash with investors. "There is an increase of the share of domestic buyers in France, 30 in normal times to about 40-70 on recent operations," said Felix Orsini, in Société Générale. According to him, French companies, regardless of their rating, have interest to appeal to the market at the moment, because their risk premium has not increased and that their cost of funding declined even globally since the beginning of the year. In France in the first half (from the last six months of 2009), debt issuance volumes have also jumped 69, secure obligations of 86 and the debt of companies non-financial of 2.

The gap even more between transmitters that the "good" arrive to borrow on maturities at least as long as beginning of the year. "Because well perceived companies meet for performance of pension funds, pension funds and insurance companies", says the team of Natixis.