Refinancing risk is likely to continue to be a major concern for Australian corporates and the unpredictability of the global predicament is a good reason as any to diversify and lock in funding early.
Banks are likely to continue maintaining strict lending criteria, however, as bank appetite and availability of capital recovers, there will likely be downwards pressure on pricing as banks redeploy capital and chase a thin supply of investment grade deals.
- European sovereign debt crisis contained but not over.
- A window of opportunity arising with improved pricing and volume for well-positioned borrowers.
- GFC catching up to SME as defaults increase, although domestic banks continue to see this segment as an area for growth.
- Debt capital markets active although the outlook for securitisation is uncertain.