Job losses and smaller bonuses, coupled with a sluggish European primary pipeline, paint a grim outlook for the start of the year. However, players are still hopeful that once the market restarts, it will be back to business as usual.
At the moment, though, there are no deals on the primary side. "Overall volumes remain anemic in comparison to pre-crisis norms, with total volumes reaching a mere 40 billion in the fourth quarter to date, a staggering 70% lower than the comparable period last year," Deutsche Bank analysts said. "We expect to see very little primary deal flow in the run-up to the year end, and generally expect issuance to remain relatively light early in the new year."