3rd Yearbook Fixed Income and Alternative Financing IEB-Axesor

28th September of 2017

This time, the Yearbook takes the pulse of fixed income markets at a time that is critical to the sector, as large central banks begin their stimulus withdrawal maneuvers after years of massive money injections. Added to this is the financial sector's strong pressure on businesses, taking advantage of the abundance of liquidity to make aggressive financing offers. However, as explained in the report, the over-reliance on bank credit (which in the Spanish business fabric accounts for between 80% and 90% of its financing) is not good for companies, nor for the banks themselves, which are increasing risk on their balance sheets. Diversification of funding sources, for example through fixed income instruments, not only becomes a priority, but is key as a lever for business growth. Thus, the report recalls that although the MARF (Alternative Fixed Income Market) is newly created (born in 2013) it has already managed to mobilize more than 2 billion between bonds and promissory notes. In addition, as this fixed income market is better known, investors are learning to better identify the risk of trading: the first market issue was made with an interest of 7.5% for a five-year bond, while the latter has been placed with interest of 3.66% and within 30 years, which is a milestone in capital markets.