Companies will take out bank loans in growing numbers this
year, advancing a trend that started in mid-2013 when bond
markets turned rough, bankers say. Yields on 10-year US
Treasuries nudged 2.9% in December - more than a point higher
than at the beginning of 2013 - after the US Federal Reserve
began winding down its bond buying program.
News Loans/People: Driving loan growth
Borrowers flocked to the syndicated loan market in the fourth quarter — a trend that banks expect will continue this year as debt markets become less predictable. By Karen Schwartz
Borrowers will balance funding costs between bonds and
loans, but a rise in mergers and acquisitions, which
contributed to a pick-up in deals in the second half of 2013,
could further drive the loan market this year.
A number of loans were launched in December. Mexico's Sigma
Alimentos met banks to discuss acquisition funding (see page
10), while Brazil's InterCement unveiled a $900 million
refinancing package. It held bank meetings in New York and
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