ANALYSIS: Swedish Bank Crackdown Sends Corporates To Bond Market

Sweden’s tough regulations on its own lenders, regarded as even more stringent than the Basel III bank capital rules, could fire up the Nordic country’s corporate debt market in 2012, as small and mid-cap borrowers in particular rush from hard-to-get loans to readily available bonds, International Financing Review reported. While heads of the world’s leading economies have agreed to introduce stricter bank capital and global liquidity rules by 2013, Sweden has urged its four biggest lenders to ensure that they have bigger buffers sooner. “Stricter rules means corporates will find it tougher to borrow money and will be forced to the debt capital markets instead,” one syndicate banker said. Read more.