Revolvers misfiring?
Thanks to the uncertainty in the capital markets late last year, several corporates tapped committed revolving credit lines set up as backstop facilities. Could a potential surge in drawdowns affect already capital-constrained banks? By Christopher Whittall
Hard as it may be to believe in these turbulent times, cheap credit was easy to come by for much of the past decade. As recently as the first half of 2007, the going remained good for borrowers, with credit spreads locked at historically low levels. And in the ultra-competitive loan business, banks looked to increase market share by extending funding to even the lowest-rated corporates while at
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