R :This leaves room for other borrowers, right ?
F : Yes, supranationals have diversified tremendously,
both in their products and markets. Corporate borrowers are
also very active.
R :But after the crises investors have become more
cautions, haven’t they ?
F : That is right. Credit ratings of borrowers have become
much more important. Investors demand transparency and
liquidity. Borrowers are finding it much harder and more
expensive to raise sufficient funds on the international debt
market.
R :How has the introduction of the Euro affected the bond
market?
F :Some are thinking of Euro-denominated bond issues as
the bondmarkets are moving away from the dollar in favour of
the Euro. The competition is becoming keener.
R :We are entering a new and turbulent phase in the debt
markets. Many people believe that the worst isyet to come.
