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Bulgaria's investment potential

Bulgaria's Investment Agency Director on investing in Bulgaria
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Real-Time communication

Peter Quinlan explains the manifold benefits of benefits of telepresence
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Belgian investment

An interview with the Belgian economic attache on investment in Flanders

Stock market volatility

We assess the current state and long-term prospects for investors in stocks

Artistic investment

Investing in art can yield big dividends, we investigate the market for corporate acquisitions

Trump card

A look at Donald Trump's rise to prominence

Growth through innovation

We profile the rise in patents for intellectual property in Asia

CEO Profiles

Rupert Murdoch

Rupert Murdoch

King of a vast media empire and CEO of News Corporation, Murdoch is no stranger to controversy. His rise to prominence and sustained success provide lessons to all aspiring entrepreneurs
Bill Gates

Bill Gates

One of the most recognisable CEOs of all time and known for his passion for software, Bill Gates recently stepped down from Microsoft to concentrate on philanthropic work
Eric Schmidt

Eric Schmidt

Eric Schmidt, the current CEO of Google, also works for Apple. You'd think that being part of one globe-conquering corporation would be enough for one man, but you'd be wrong

Latest Edition

In this issue...

In the June-July issue of European CEO we take a look at Michael O'Leary's Ryan Air, asking whether the public have finally had enough of the publicity pursuer, and what he means to the airline. As usual, we deliver management advice, strategic tips and CEO profiles from across Europe and beyond. Click on the cover to read the magazine in full and online.
Latest Edition

The end of an empire?

Rupert Murdoch sees the internet as the chance to supply global audiences with as much entertainment, news and sport as they can absorb. The marketing and promotion opportunities for News Corp are huge, and so we ask whether clicks and hits can help a weary News Corp outsmart the recession

Stocks and the long run

The realisation that today's stock indexes have, in real terms, yielded 0 percent returns across the past decade has led investors to question the value of diversified stock investments. We ask just what the future holds?

The end of aviation

With global economic development seemingly dependent on our ability to fly, and in light of spiralling fuel costs and concerns over the impact of aviation on the environment, Bradford Plumer asks: just what will happen when the world can no longer afford to fly?

What makes a leader?

Business acumen? A nose for a deal? A take no prisoners attitude? Just what is it that defines what it is to be a good leader? Tim Newbound speculates on just what it takes to become the best in business; taking in attitudes in the boardroom, strategies to employ and personal characteristics

Crisis brings debt opportunity for Europe

By

EU corporate bonds:  Not everything debt-related about the crisis has been a disaster. Corporate borrowers in Europe have discovered an appreciation for the bond markets. Record issuance followed the collapse in bank loans. If the shift in funding continues, it will be one of the welcome developments from the mess.

In the first half of the year, European corporate issuance tallied $344 billion. That’s already a third more than was issued in all of 2008, according to Thomson Reuters. It’s also 70 percent more than corporate loan volumes so far – a huge reversal of the borrowing mix for European companies, which have clung to the idea of “relationship banking” for longer than their US counterparts. In 2007, the $1.4 trillion of corporate loans was six times the continent’s bond issuance.

Some of the decline in loan volumes can be attributed to reduced demand. Companies have simply been investing and acquiring less to brace for the downturn. But more of it has been a result of the rapid and widespread bank deleveraging that has pushed loan prices up, and for some, all but closed the business down.

Where banks have shied away from lending, investors have been all too eager to do so. Corporate bond spreads have been attractive against low-yielding government bonds. Equities, despite their second-quarter surge, were considered too risky for many a few months ago. Even retail investors have been piling in to corporate bonds.

The liquidity in the bond markets is no panacea – now or in the future. Only large companies can access them. Moreover, investors have already started to become more discerning about which paper they buy. As spreads have come in and equities have rallied, the appeal of bonds could decline. There’s a risk the tide that rushed in could flow out.

European companies also will inevitably turn back to their trusted lenders – once they can be trusted again. But having had a bigger taste of the flexibility afforded to them by the bond markets, they’re apt to tap a healthier mix of liquidity going forward. They’ll have the crisis to thank for that.

Context News
Corporate bond issuance in Europe totaled $344 billion through June 23, compared to $261 billion for all of 2008 and $167 billion in 2005, according to Thomson Reuters. Corporate loans in the continent year-to-date were $199 billion compared to $674 billion in 2008 and $1.1 trillion in 2005.

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