What a difference a long-term refinancing operation (LTRO) makes. In the second half of last year, debt capital markets (DCM) activity dropped to its lowest level since the second half of 2008. Aside from a few notable high spots, including AsiaPacific (up 18%) and corporate investment grade (up 12%), the arrows pointed down for total year volumes across most products: US-marketed DCM was down 12%; global financial institution group (FIG) volume down 13%.
After the European Central Bank's LTRO at the end of December, however, everything changed. Senior unsecured bank funding, virtually dead in the second half of 2011 as the eurozone crisis continued to drain the markets' confidence, got off to a good start in 2012. Year-to-date, the sector chalked up more volume in fewer than seven weeks than in the entire second half of last year.
