Since September 2007, the markets have been characterised by a massive withdrawal of investment banking balance sheet. This has been driven by tighter regulatory provisions combined with the emergence of a more riskaverse management culture within the banks. While large multi-nationals have continued to enjoy a business as usual service from the investment banks, smaller firms have seen access to credit dry up. The signs are that they will turn instead to the fixed income markets and debt issuance - rather than traditional bank loans - as a primary method for raising capital. This will have wide implications throughout the entire value chain as new entrants to the market - a breed of “New Merchant Bank” – look to seize an unprecedented opportunity in European debt markets.

The market in Europe is now set to take off, growing significantly in terms of the breadth of institutions engaged in fixed income activity and transaction volumes.