Skip to main content
Knowledge and Training for Financial Decision Making!

STUDIES | CORPORATE FINANCE


Share Issues 2023

FINANZIERUNGSMONITOR KAPITALMARKT: KAPITALERHÖHUNGEN FÜR FÜNF MILLIARDEN EURO IN 2023
Quirin Privatbank - A study on capital market activities revealed that there were a total of 60 capital increases through share issues with a total volume of five billion euros in 2023. With the exception of two measures, these were mainly small-scale measures. Against a backdrop of great uncertainty on the stock market, anchor investors were in demand with a third of the measures being characterized by a backstop investor. You can read the exact figures and many other findings in the Capital Market 2023 Financing Monitor by Quirin Privatbank. >more


Structured Credit Market

M&G Investments
HIGH YIELD STRUCTURED CREDIT: RIPE CONDITIONS WITHIN THE EUROPEAN MARKET
Today’s structured credit market is characterised by a diverse range of asset types and instruments. These can be accessed through both public and private markets. The array of options include asset-backed securities (ABS), collateralised loan obligations as well as Significant Risk Transfer (SRT) transactions and other forms of private asset-backed finance such as specialty finance – two key investment areas emerging from the wake of the Global Financial Crisis (GFC). Several long-term structural themes have propelled these five verticals’ forwards in recent years. These themes look set to shape their development and evolution ahead as the asset class enters its next phase of growth. >more


Financing Conditions

KfW Research
ZINSWENDE MIT ÜBERSCHAUBAREM ZUSATZEFFEKT AUF DIE INVESTITIONEN IM MITTELSTAND
The announcements by the European Central Bank indicate that the current tight monetary policy is likely to be eased in the near future. The then more favorable financing conditions have the potential to give investment activity in the SME sector an (at least slight) boost in 2024. This is shown by a special survey conducted by the KfW SME Panel in mid-April 2024. Around 5 to 6% of SMEs are very likely to expand their investments beyond the level planned for 2024 in the event of a key interest rate cut. In addition, there are those companies that have already planned investments but are still on hold due to the current discussion about implementation. Companies' transformation efforts are likely to benefit from this. This is because investment impetus is expected in the areas of digitalization, climate protection and/or energy efficiency in particular. >more


Commercial Real Estate Financing

PwC
GEWERBLICHE IMMOBILIENKREDITE IN DER KRISE: STEHT DEUTSCHLAND VOR EINER NPL-WELLE?
Higher key interest rates, a sharp decline in transaction volumes and regulatory requirements are significantly increasing the default risk for commercial real estate financing. The volume of non-performing commercial real estate loans has already risen by 56% in 2023. Macroeconomic factors are leading to property value discounts and therefore also to increased loan-to-values and higher credit risks - a further increase is therefore to be expected. Project financing is particularly at risk, as are non-ESG-compliant office and retail properties in secondary locations. However, a wave of NPL sales on the scale of the major financial crisis is not to be expected. There are significant differences to the initial situation at that time. >more


Global Corporate Divestiture

Deloitte
2024 GLOBAL CORPORATE DIVESTITURE SURVEY
In our latest Global Corporate Divestiture Survey of mergers and acquisitions (M&A) and restructuring leaders, we explore not only the latest trends in divestiture, but also its changing role in corporate strategy. A wholly realized M&A approach is really what we might call an M&A&D approach. >more


Insolvencies

Leibniz Institute for Economic Research Halle (IWH)
IWH-INSOLVENZTREND: ZAHL DER FIRMENPLEITEN IM MÄRZ ABERMALS AUF REKORDNIVEAU
The number of insolvencies of partnerships and corporations rose to another record high in March. Never since the Leibniz Institute for Economic Research Halle (IWH) began its survey in January 2016 have there been more company bankruptcies. However, an end to the rise in insolvency figures is in sight. >more


Automotive Suppliers

Oliver Wyman
WIE FINANZIEREN AUTOMOBILZULIEFERER DIE TRANSFORMATION?
Ever stricter lending criteria and higher interest rates pose an existential threat to automotive suppliers. The necessary cost-intensive transformation to electromobility is made even more difficult by historically low margins. Without countermeasures, there is a risk of a significant increase in insolvencies. A convincingly communicated and sustainable strategy on the part of suppliers is crucial for access to financing. Banks could improve the situation if they took a more differentiated view of the automotive sector. >more


Venture Capital Markets

Deutsche Bank Research
STARKE RISIKOKAPITALMÄRKTE: VON ZENTRALER BEDEUTUNG FÜR GRÜNE UND DIGITALE INNOVATIONEN
Venture capital markets play a key role in financing the innovations needed for the green and digital transitions. They identify promising start-ups and provide them with funding so that they can realize their growth potential. In the EU, the volume of newly invested venture capital (VC) has increased almost fivefold in the last decade. Nevertheless, the market in Europe remains much smaller than in the US, making it more difficult for young European companies to grow than their US counterparts. To continue to grow, the venture capital market in the EU must overcome not only the current slump, but also structural problems in fundraising, larger financing rounds and the exit environment. >more


German Credit Market

KfW Research
KFW-KREDITMARKT­AUSBLICK: MÄRZ 2024
The new lending business of German banks and savings banks with companies and the self-employed, as calculated by KfW Research, has bottomed out: As the current KfW Credit Market Outlook shows, the decline in new business slowed to -12.5% in the fourth quarter of 2023 compared to the previous year, after a considerable -15.7% in the third quarter. In the current first quarter of 2024, KfW Research expects a further significant slowdown in the decline and a recovery over the course of the year. >more


Leasing 2024

Institut der Deutschen Wirtschaft
LEASING-MARKTBERICHT 2024
Investment in Germany is suffering from the current macroeconomic conditions. In 2023, real gross fixed capital formation fell again by 0.7% compared to the previous year. This means that it has been more or less consistently 2.5% below the 2019 level for three years now. Real investment in equipment increased by 3% in 2023 compared to the previous year. However, the recovery trend did not continue in the fourth quarter of 2023 and, adjusted for price, seasonal and working-day effects, it was recently slightly below the level of the fourth quarter of 2019. Construction investment has been declining over the past three years due to the sharp rise in financing costs. >more

 


Lending Business Q4 2012

Deutsche Bank Research
SYNCHRONER ABSCHWUNG VON KONJUNKTUR UND UNTERNEHMENSFINANZIERUNG IN Q4 2023
The lending business with companies and the self-employed stagnated at the end of the year; 2023 as a whole saw the lowest growth since 2014 (+0.9%). Almost all sectors, maturities and bank groups are affected, with the associations holding up better than the major banks. Overall demand is suffering from the increased financing costs - capital market issues also performed very weakly. An improvement is not expected until interest rates are lowered. >more


Sustainable Economy

KfW Research
BISHER NUR WENIGE KMU VON BANKEN AUF NACHHALTIGKEITSINFORMATIONEN ANGESPROCHEN – BEDARF DÜRFTE ABER ZUNEHMEN
The financial system plays an important role in the transformation of the economy towards climate neutrality. This is because the transition to a sustainable economy requires a corresponding mobilization of capital. Sustainability information will therefore also become increasingly important in lending. So far, this process has mainly involved credit institutions and their larger corporate customers, while requests for sustainability information are still relatively rare for SMEs in general. The results of a special survey for the KfW SME Panel in fall 2023 show that last year, only around one in six SMEs (16%) addressed the topic of sustainability in loan negotiations. This particularly affected larger SMEs, where the proportion was 45%. However, the need for information on the topic of sustainability is likely to increase further in the future and also include small and medium-sized enterprises. >more


Global Insolvency

Allianz Research
GLOBAL INSOLVENCY OUTLOOK: REALITY CHECK
As expected, 2023 recorded a high-speed and broad-based rebound in business insolvencies and 2024 started with insolvencies above pre-pandemic levels in most advanced economies. The number of business insolvencies rebounded in three out of four countries in 2023, with most recording a double-digit increase. Globally, the average increase in business insolvencies accelerated from +23% in 2022 to +29% in 2023, the fastest momentum since 2009 (+33%). The exceptions were mainly in emerging markets, notably the BRICS, but they account for a noticeable share of global GDP (30%) and thus our global insolvency index (38%), lowering the annual increase of our headline indicator. >more


Structured Credit

M&G Investments
EUROPEAN STRUCTURED CREDIT REVIEW AND OUTLOOK: FROM STRENGTH TO STRENGTH
Structured Credit, and the European ABS market in particular, performed strongly during 2023, aided by attractive valuations, robust underlying collateral performance – despite higher borrowing costs for consumers and corporates – and significant income generation, attributes which have only become more compelling given the uncertain economic outlook. As we enter 2024, we reflect on the key trends that have shaped the asset class over the past 12 months and some of the main themes worth watching over the coming quarters. >more


Private Credit Market

HSBC
PRIVATE CREDIT MARKET UPDATE
Private credit as an asset class is in demand from a range of investors. The asset class has become a direct substitute for traditional fixed income assets for many investors, which are continuing to increase allocations. A recent investor survey suggested that 51 per cent of existing private credit investors expect to increase their allocations further over the long-term – more than any other asset class. Private credit has generated significant headlines in the global press in recent months. Journalists have commented on the growth the asset class has experienced, as well as risks. >more


Access to Credit Q4 2023

KfW Research
KFW-IFO-KREDITHÜRDE: Q4 2023
Access to credit remains difficult for German companies. It is true that the credit hurdle perceived by companies fell slightly from its peak in the fourth quarter. Nevertheless, over a quarter of small and medium-sized enterprises, namely 28.8%, rated the banks' behavior in loan negotiations as restrictive. Companies' interest in loans also remains weak. Despite the sharp rise in lending rates in the fourth quarter, demand for credit did not experience any additional losses, but remained stable at a low level. The restrictive monetary policy and the weak economic outlook are the main factors weighing on the lending business. >more


Activist Investing

Skadden
ACTIVIST INVESTING IN EUROPE 2024
Our ninth annual report on shareholder activism, produced by Skadden in collaboration with Activistmonitor, anticipates a possible spike in activity across ‘mature markets’ in Europe, such as the U.K. and France. Corporate executives and activist investors also foresee a possible shift in perspectives on ESG issues, perhaps due to the current economic climate. >more


Lending Q3 2023

Deutsche Bank Research
FLAUTE IM KREDITGESCHÄFT UND DER KONJUNKTUR HÄLT IN Q3 2023 AN
Lending to companies and the self-employed slowed further in the third quarter (volume EUR -2.6 bn; +0.8% year-on-year). Almost all sectors, maturities and bank groups were affected. The main causes remained higher interest rates and a low propensity to invest. Deposits shrank for the first time since 2014 (-1.3% yoy). Bond issuance was at its weakest since 2008, while leasing performed very well. The German economy is currently likely to be in a slight recession after GDP fell by 0.1% in Q3 and no improvement is expected by the end of the year. >more


German IPO Year 2023

PwC
EMISSIONSMARKT DEUTSCHLAND: TRISTESSE IM DEUTSCHEN EMISSIONSMARKT – HOFFNUNG AUF IPOS IM JAHR 2024
In late summer, it still looked as if the German issuing market could pick up speed towards the end of the year. However, hopes of a strong final quarter were not fulfilled: Not a single company ventured onto the Frankfurt Stock Exchange in the fourth quarter. It is a disappointing end to a weak IPO year in which there were only three initial listings (previous year: 4) on the Frankfurt trading floor. At 1.9 billion euros, the total volume of IPOs was also significantly lower than the previous year (9.4 billion euros), when the Porsche IPO boosted the IPO balance sheet for 2022. >more


SME Panel

KfW Research
KMU VERZICHTEN HÄUFIGER AUF BANKKREDITE – ZINSNIVEAU SPIELT DABEI EINE GROßE ROLLE
The monetary policy turnaround initiated in summer 2022 has noticeably changed the financing environment for small and medium-sized enterprises in Germany. A special survey on the KfW SME Panel from September 2023 shows that around seven out of ten companies that have conducted loan negotiations with banks or savings banks in the current year rated the interest rate offered to them as too high. Other problems follow at a considerable distance. >more


Insolvency in 2023

Institut der deutschen Wirtschaft (IW)
UNTERNEHMENSINSOLVENZEN AUF DEM WEG NACH OBEN
After a slight increase in 2022, which can also be seen as a step towards normalization following the sharp decline during the coronavirus pandemic in 2020/21, a sharp rise in insolvency cases of almost a fifth is expected in 2023, which is likely to continue in 2024. The trend reversal is being fueled by high energy prices, rising interest rates and the weak economy. In a dynamic economy, however, insolvencies are not exclusively negative. Company closures are part of the structural change in which resources in shrinking sectors are freed up to be put to new, more economically efficient use in growing economic sectors and companies. This applies in particular to scarce skilled workers. However, more innovative start-ups would be important for this. >more


Climate Financing

KfW Research
THE CLIMATE FINANCING ROADMAP
Global decarbonization and climate adaptation require trillions of dollars of annual investment, most of it from the private sector. To achieve the goal of limiting global warming, climate protection investments worldwide must increase by at least 30% annually – three times faster than before. Development finance institutions (DFIs) are seen as key mobilizers of these flows, catalysing private financing in particular. A joint paper by BCG and KfW provides a big-picture perspective on how DFIs are innovating and evolving in sync with their ambitious climate financing goals. Along several dimensions – from the business and operating models to the necessary regulatory and policy framework – this paper explores how development and promotional banks globally can make a valuable contribution to closing the looming financing gap. >more


German Economy

ifo
DIE DEUTSCHE WIRTSCHAFT NACH DREI HERAUSFORDERNDEN JAHREN – DROHT EINE PLEITEWELLE?
The German economy is struggling with the current economic and geopolitical situation. Rising prices and interest rates as well as cross-sector uncertainty are making day-to-day business difficult for many companies. Existential fears are evident in all areas of the German economy. >more


Payment Practices

Creditreform
ZAHLUNGSVERHALTEN IN DEUTSCHLAND, 3. QUARTAL 2023
German companies had better payment practices in the third quarter of 2023 than in the same period of the previous year. Late payments have decreased significantly despite the numerous crises such as ongoing inflation, rising interest rates and an economic policy lurch. However, uncertainty plays a major role in this. >more


Banks Loan Portfolios

Bundesvereinigung Kreditankauf und Servicing (BKS)
NPL-BAROMETER HERBST 2023
German economic output is stagnating and interest rates have risen sharply. This is leaving its mark on banks' loan portfolios. "According to risk managers, non-performing loan portfolios will increase in all asset classes," says Professor Christoph Schalast, Chairman of the Advisory Board of the German Federal Association for Credit Purchase and Servicing (BKS). The market for non-performing loans (NPL) is now showing a reversal from a seller's to a buyer's market - in other words, a decline in prices. >more


Gobal Credit

BlackRock
GLOBAL CREDIT OUTLOOK 4Q 2023
3Q2023 provided further confirmation of the “higher for longer” interest rate environment that we had been expecting, alongside a key consequence for corporate borrowers: a higher cost of capital. Looking ahead, we expect this higher cost of capital to persist over (at least) the next few quarters and continue to view the bar for policy normalization from the Fed and ECB as high. But rather than a source of potential market-wide disruption in 4Q2023, we instead view this higher cost of capital as a catalyst for fundamental and performance dispersion. This is true across a range of asset classes (both public and private), sectors, and issuers. >more


Global Insolvency

Allianz Research
GLOBAL INSOLVENCY OUTLOOK 2023-25
With buffers waning, most vulnerable corporates and sectors have been caught between a rock and hard place in 2023, with hospitality, transportation and wholesale/retail on the front line. Excess cash at non-financial corporates remained high in the first half of 2023 at EUR3.4bn in the Eurozone and USD2.5bn in the US, more than +30% above pre-pandemic levels. But this cash buffer remains highly concentrated in the hands of large firms and in specific sectors (tech, consumer discretionary). At the same time, net cash positions are dropping faster than economic activity. Besides hospitality, transportation and wholesale/retail, other sectors are catching up fast, in particular construction, where backlogs of work have been almost completed – especially in the residential segment. >more


Invest in Climate Protection

KfW Research
VIELFÄLTIGE HEMMNISSE BREMSEN KLIMASCHUTZINVESTITIONEN IM MITTELSTAND
German SMEs are already active in the area of climate protection: more than half of them are planning to invest in climate protection in the next three to five years or are discussing it. Measured against the immense investment requirements needed to achieve the climate neutrality target, however, there is still room for improvement. Results from a special survey of the KfW SME Panel show that SMEs face a large number of obstacles in planning and implementing climate protection investments, especially in the areas of economic efficiency and financing. A broad mix of instruments is needed to address these barriers. These include, in particular, the creation of suitable framework conditions so that companies embark on the targeted climate neutrality path in the first place, as well as approaches to the financial barriers, e.g. in the support of novel climate protection technologies. >more


Number of Insolvencies

IWH
IWH-INSOLVENZTREND FÜR SEPTEMBER: LAGE STABIL, AUSSICHT TRÜB
The number of insolvencies among partnerships and corporations in September was again above the pre-Corona pandemic level. The number of employees affected was significantly higher. The Leibniz Institute for Economic Research in Halle (IWH) expects a noticeable increase in insolvencies in the fourth quarter. >more


Global Corporate Credit and ESG

Neuberger Berman
2023 GLOBAL CORPORATE CREDIT ESG ENGAGEMENT REPORT
In recent years, a variety of market-disrupting events have underscored the importance of active ownership and the analysis of financially material environmental, social and governance (ESG) factors in fundamental credit research and investment decision-making. In our view, asset managers who leverage their relationships with issuers are best positioned to manage these ESG risks and take advantage of ESG opportunities. As highlighted in our prior engagement reports, Neuberger Berman views direct issuer engagement as a critical tool to mitigate portfolio risks while generating long-term sustainable returns. >more


Industrialization of Lending Business

PwC
INDUSTRIALISIERUNG DES KREDITGESCHÄFTS 2023
Many German banks are no longer operating at the cutting edge of their most important business segment. This is shown by the PwC study "The Industrialization of the Lending Business 2023". The average level of industrialization in corporate banking is 41% and in retail banking 50%. A large number of the institutions surveyed are below the average value for the respective business area. In concrete terms, this means that even common processes such as "e-signature" or "online legitimation" have not yet been implemented. This is despite the fact that, due to the current economic situation and the entry of new competitors, customer acquisition and retention is currently of great importance for the banking market. >more


Leasing and German SME

KfW Research
LEASING IM MITTELSTAND – KEIN ALLROUNDER, ABER EIN INSTRUMENT MIT POTENZIAL
Leasing is an established procurement instrument among SMEs. This is shown for the first time by representative figures from the KfW SME Panel on the use of leasing by small and medium-sized enterprises (SMEs). Most recently, more than one in five SMEs in Germany used leasing to acquire fixed assets. However, the use of leasing by SMEs is dominated by car leasing. Around 80% of SMEs that concluded leasing agreements in 2021 or 2022 did so to purchase passenger cars. A direct comparison with traditional investment (purchase) also highlights the continued subordinate importance of leasing in the procurement of fixed assets. Nevertheless, leasing has the potential to make an important contribution to the dual transformation of the economy. Leasing is a suitable (financing) alternative for investment projects in the areas of digitization and climate neutrality. >more


Number of Insolvencies

IWH
IWH-INSOLVENZTREND: ETWAS WENIGER FIRMENPLEITEN IM AUGUST, IM NÄCHSTEN QUARTAL WOHL DEUTLICH MEHR
The number of insolvencies among partnerships and corporations in August was again above the pre-Corona pandemic level, but fell slightly for the second month in succession. Rising insolvency figures are likely for the fourth quarter. Much faster than official statistics, the IWH Insolvency Trend of the Leibniz Institute for Economic Research in Halle (IWH) provides a reliable finding on the nationwide insolvency situation for partnerships and corporations every month. The results show only minor deviations from the official figures, which allow a comprehensive assessment of the situation with a time lag of around two months. The IWH insolvency trend is therefore a reliable leading indicator. >more


Credit Demand Q2 2023

Bundesverband deutscher Banken
UNTERNEHMENSFINANZIERUNG AKTUELL: 2. QUARTAL 2023
Credit demand remained weak in the 2nd quarter of 2023. The total volume of outstanding loans grew by 0.3% quarter-on-quarter to €1,140 billion. Banks are available for financing. According to the Bank Lending Survey, lending has tightened only slightly recently due to increased market risks. Interest rates have moved to a significantly higher level as a result of monetary policy. >more


Credit Market

KfW Research
KFW-KREDITMARKTAUSBLICK AUGUST 2023
Following record growth in the previous year, new lending from German banks to enterprises and self-employed persons in the first quarter remained just barely below the level of the same quarter last year. Available data already indicates stagnation for the second quarter. Banks remain cautious in their lending practices but an end to the tightening of lending criteria appears to be in sight. >more


Demographic Aging and Succession

KfW Research
DEMOGRAFISCHE ALTERUNG SETZT UNTERNEHMEN BEI NACHFOLGEN DOPPELT UNTER DRUCK
Demographic aging is putting companies under double pressure when it comes to succession: On the one hand, the number of owners ready to succeed is rising, while on the other hand, the number of potential successors is falling. Increased visibility of positive examples and better provision of information on financing options are starting points for counteracting this. >more


Insolvency Trend

IWH
IWH-INSOLVENZTREND: ZAHL DER INSOLVENZEN SO HOCH WIE SEIT SIEBEN JAHREN NICHT MEHR
According to the IWH Insolvency Trend, the number of insolvencies of partnerships and corporations in Germany was 1,050 in June. This is 16% more than in May and 48% more than in June of the previous year. This means that the number of insolvencies in June was 11% higher than the average figure for the month of June in the years 2016 to 2019. The last time the number of partnerships and corporations recorded in the IWH Insolvency Trend was higher was in June 2016. >more


Global IPO Q2 2023

EY
GLOBAL IPO TRENDS Q2 2023
While the number of IPOs remained flat, the Americas region saw an increase in proceeds of 86%, raising $US9.1b, YOY. This growth was primarily attributed to a single mega spin-off IPO, which happened to be the largest US IPO since November 2021. EMEIA IPO activity has continued to shrink, with 167 listings raising US$12.4b YTD, a 12% and 50% decline respectively YOY. Despite this, the region kept its position as the second largest IPO market with 27% of all IPO deals, and the second biggest IPO at US$2.5b. In the year to date (YTD), the Asia-Pacific IPO market has maintained its position as the global leader in IPO volume and value, with an approximate 60% share. Of the top 10 global IPOs, half were from Mainland China and one was from Japan. >more


German IPO HY1 2023

PwC
EMISSIONSMARKT DEUTSCHLAND: IPOS BLEIBEN AUS – AUSBLICK AUF ZWEITES HALBJAHR POSITIVER
In terms of IPOs, the second quarter was a disappointment: The Frankfurt Stock Exchange did not register a single Initial Public Offering (IPO).  In terms of issue volume, the first half of 2023 recorded the weakest start to a year since 2023, which was dominated by Corona. Debt issuance offers a ray of hope: Both the issuance volume and the number of issues for investment grade bonds recovered significantly in the first half of 2023 compared with the previous year. >more


Shareholder Activism

Alvarez & Marsal
SHAREHOLDER ACTIVISM IN EUROPE: 2023 INTERIM OUTLOOK
Our latest A&M Activist Alert ("AAA") Interim Outlook reviews shareholder activism in Europe in 2023, and predicts how such activism will evolve over the rest of the year and into 2024. As part of our analysis and predictions we have identified 143 European corporates that we consider are at heightened risk of shareholder activist campaigns over the next 18 months. Now in its sixth year, the "AAA" is the most comprehensive forecasting tool of its kind. Based on statistically robust analysis it has successfully predicted ~50% of public activist campaigns over the past five years. It focuses on the major European markets of the UK, Germany, France, Scandinavia, Switzerland, Benelux, Italy and Spain. >more


Lending Q1 2023

Deutsche Bank Research
LEICHTE REZESSION UND BREMSSPUREN IM KREDITGESCHÄFT IN Q1 2023
Lending to companies and self-employed persons continued to normalize, i.e. calm down, in the first quarter due to low demand and tighter credit standards (volume EUR +9.1 billion; +6.4% yoy). This mainly affected short-term loans and almost all sectors. Foreign banks and development banks are well ahead of the competition. The increase in interest rates and deposits weakened. >more


European Venture Capital

European Investment Bank
ENTREPRENEURIAL FINANCE AND THE RUSSIAN WAR AGAINST UKRAINE: A SURVEY OF EUROPEAN VENTURE CAPITAL AND PRIVATE EQUITY INVESTORS
The EIF VC Survey and the EIF Private Equity Mid-Market Survey (the largest combined regular survey exercises among General Partners on a pan-European level) provide an opportunity to retrieve unique market insights. This publication is based on the results of the 2022 waves of these two surveys and examines how the Russian offensive war against Ukraine that started in 2022 affected VC and PE mid-market fund managers and their portfolio companies. The results show that the war - and the related consequences - had a strong impact on the two investor types and on entrepreneurial finance in Europe, inter alia regarding the challenges faced, investment strategies as well as LPs’ reaction to the changed macroeconomic and geopolitical environment. >more


German Start-up Activity

KfW Research
KFW-GRÜNDUNGSMONITOR
Start-up activity in Germany fell to 550,000 start-ups in 2022. Of these, 222,000 were full-time startups (40 %) and 328,000 were sideline startups. However, in one in five sideline startups, the intention is to expand self-employment to fulltime employment. The sustained positive development of the labor market has contributed significantly to this decline. The shortage of skilled workers will remain a major challenge for startup activity in the future. Overall, the number of female founders in particular has fallen, while the number of male founders has hardly changed. >more


Financing Conditions

Deutsche Bank Research
IS LENDING TIGHT? FINANCING CONDITIONS FOR GERMAN COMPANIES
Corporate lending is slowing substantially but this is primarily a normalization and due to subdued demand at least as much as it is due to supply conditions, i.e. banks’ tighter credit standards. At +8% yoy, credit expansion is still substantial. Only two industries are currently seeing a contraction. More worrying is the drying up of the corporate bond market where net issuance has collapsed since autumn. It is suffering from the double whammy of much higher interest rates and the disappearance of its dominant buyer of recent years, the ECB. >more



Global IPOs

White & Case
GLOBAL IPOS: SEEKING SIGNS OF STABILIZATION
It was clear in the opening months of 2022 that the winds had changed for the global IPO market as compared to the prior year, a rocky path that continued throughout the year and into the first quarter of 2023, but with a few notable bright spots. >more


CFO Survey Spring 2023

Deloitte
CFO SURVEY: FRÜHJAHR 2023
The Deloitte CFO Survey reflects the assessments and expectations of CFOs of large German companies on macroeconomic, corporate strategy and financial topics. The survey is published semi-annually and aims to identify trends and trend breaks. Overall, the Spring 2023 edition shows a cautious recovery in the outlook. At the same time, however, significant risks remain for companies, particularly in the field of geopolitics. Other key topics include dynamic finance and sustainability for CFOs. >more


KfW-IFO Credit Q1 2023

KfW Research
KFW-IFO-KREDITHÜRDE Q1 2023
German companies are once again finding it somewhat easier to obtain credit. The KfW-ifo credit hurdle for the first quarter of 2023 is some distance below the highs previously reached. Nevertheless, around a quarter of small and medium-sized enterprises still perceive the behavior of banks in credit negotiations as restrictive. This means that access to credit remains more difficult than average. The easing of credit policy is likely to be mainly due to the defusing of the energy crisis. Due to the improved overall economic risk situation, loan defaults are becoming less likely. >more


Credit Market Study

EY
KREDITMARKTSTUDIE 2023
According to German banks, the difficult economic situation and high energy prices will have a noticeable impact on lending and also lead to rising costs for borrowers. Thus, 59 percent of the 120 bank managers surveyed for the "EY Credit Market Study" describe the economic situation in Germany as poor - only four percent as good or very good. And 86 percent consider loan defaults likely due to the difficult economic environment. The situation is aggravated by high energy prices, which 67 percent of respondents believe will lead to loan defaults. Against this backdrop, the proportion of banks planning to grant more loans is falling dramatically compared with the previous year: from 61 percent to 14 percent. Currently, 67 percent of banks are planning to scale back their lending. >more


SME Sector

KfW Research
KEINE ANGST VOR ZOMBIES: SCHULDENTRAGFÄHIGKEIT BEI 95 % DER UNTERNEHMEN IM MITTELSTAND GEGEBEN
The discussion about a growing number of zombie companies in the SME sector is not new. Such concerns were recently boosted by the fact that the feared wave of insolvencies in the wake of the Corona crisis failed to materialize. However, this concern appears to be unfounded. This is shown by a special analysis of the KfW SME Panel. Only around 4% of all small and medium-sized enterprises show critical debt sustainability. They are unable to meet their interest obligations due to low profitability. There was no discernible increase in the proportion of financially weak companies during the crisis years. In addition to economic policy packages, the ability to adapt and innovate, stable profitability even in times of crisis and a broadly solid financial foundation have brought SMEs through the crisis well. >more


Corporate Debt 2023

FTI Andersch
CORPORATE DEBT STUDY 2023
The third consecutive year of crisis after a decade of loose monetary policy and generous government aid programs during the COVID 19 pandemic is leaving its mark on European corporate balance sheets - the "zombie rate" as a KPI of this development is at a new record high of over 6%. Sectors of particular importance to Germany, such as mechanical engineering and automotive suppliers, show a negative KPI development at the European level of observation. >more


Credit Market

KfW Research
DIE SITUATION AM KREDITMARKT WIRD FÜR DIE UNTERNEHMEN ZUSEHENDS UNGEMÜTLICH
In the final quarter of 2022, the KfW-ifo credit hurdle for small and medium-sized enterprises rose for the third time in a row. 31.3% of the SMEs surveyed that were in loan negotiations rated the banks' behavior as restrictive. This is 3.4 percentage points more than in the previous quarter. At the same time, the credit hurdle for SMEs has thus reached a new high since the current survey methodology was introduced in 2017. >more


KMU Banking

McKinsey & Company
KMU-BANKING: DIGITAL ZUM ERFOLG
Low interest rates, difficult conditions in retail, corporate and investment banking, and a challenging economic environment have weighed on many core business areas of banks for years. Against this backdrop, it is worthwhile to set our sights again on previously neglected segments. Small and medium-sized enterprises (SMEs) offer banks in Europe attractive growth opportunities. Data from the European Central Bank (ECB) shows that for 20% of SMEs in Europe, access to finance is the most pressing problem. The same data also shows that one in five SMEs does not obtain debt capital to the extent planned. >more


German IPOs

PwC
EMISSIONSMARKT DEUTSCHLAND: PORSCHE BÖRSENGANG VERHINDERT SCHLECHTESTES IPO JAHR SEIT 2009
In "Issuance Market Germany," PwC analyzes all new share issues and capital increases on the Frankfurt Stock Exchange on a quarterly basis. In addition, new issues of corporate bonds by German issuers are recorded. The data on capital increases are based on information from Thomson Reuters and include transactions up to and including December 02, 2022. >more


Corporate Bond

Lombard Odier
THE CORPORATE BOND IS BACK
Corporate bonds are a combination of risks – namely interest-rate risk and credit risk. These two have historically diversified each other, reflecting the role of central banks as a countercyclical force supporting the economy with rate cuts and quantitative easing. However, 2022 has been the first year in recent history in which a significant rate drawdown has coincided with a credit drawdown – an environment which we believe won’t last much longer. >more


You are not a member?

Sign up here

Login

Forgot your password?