Credit management

In general, credits (all non-government bonds) offer investors a yield pick-up and additional diversification potential, and this has resulted in a sharp increase in demand for higher-yielding corporate bonds relative to government bonds. Companies, on the other hand, consider the issuance of bonds as an alternative financing source, which gives them more financial flexibility. Banks try to reduce their exposure to corporate loans because they are not willing to carry the credit risk any more; also, the margins in syndicated loans have been diminishing over the last couple of years.