Tue, Sep 17, 2013 - Page 15 News List

Equity issuance reflects rosy growth picture

Reuters, LONDON

Worldwide M&A activity has totaled US$1.62 trillion so far this year, up 2 percent on the year, Thomson Reuters said.

There has been a rush of capital raising in debt markets as expectations grow that the US Federal Reserve may start to slow its money printing, which has slashed borrowing costs, as early as next week. However, year to date, debt financing activity is down 1 percent from last year.

Growth in equity issuance may reflect the fact that some companies already find it expensive to raise capital in debt markets, especially after benchmark US yields hit a two-year high of 3.01 percent last week.

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