For the last decade, rock bottom interest rates have made the cost of debt so low that bonds have disintermediated equity (“Investor nerves tested as accepted truths unravel”, The Long View, FT Weekend, April 20).
Now that rates have returned to levels which (with a few exceptions) make it cheaper and strategically more attractive to raise equity than debt, that trend should reverse.
ECM (equity capital markets) departments, ready yourselves — bring on the IPOs!
Sally Macdonald
Stevington, Bedfordshire, UK
