The European Equity Capital Markets have continued along their downward trend throughout the summer months and as autumn draws in, the unremitting volatility arising from Europe’s inability to put forward a viable solution to the debt crisis has brought deal volumes staggeringly low. August and September are cyclically less active months, however, year on year figures highlight them to be significantly less active months for 2011. From the 1st of August till the 30th of September there were a total of 26 deals that priced in Europe, raising just over the $2.1bn mark. In the same period in 2010 there were 5 more deals and these raised just over $7.1bn, a sizeable amount more than this current year.
The European Equity Capital Markets returned to more moderate levels of activity following the previous month’s high number of deals. The proceeds for July amounted to $14.8 billion coming from a total of 29 deals which was similar to deal volumes seen in May. Despite totalling less than half of June’s swell in issuance proceeds, the relative decline in business would have been far worse if it was not for the large follow on offerings of more financial institutions looking to raise capital for tier 1 reserves and repayment of debt.
Deal volumes picked up in the European Capital Markets throughout June as total proceeds soared beyond the elevated levels experienced at the last peak in October. The 48 deals that priced throughout the month amounted to total of $34.3 billion in proceeds, more than double the $14.3 billion taken in May. This surge in proceeds comes amid the unrelenting talk of sovereign debt crisis, amplified by the resurgent spotlight on Greek potential default and further austerity measures being pushed through.