Bond issues freeze as panic spreads across global markets

London

ISSUERS largely steered clear of primary markets last week, sidestepping the ongoing panic that has pushed numerous equity indices into bear market territory and sent the rouble and Mexican peso to record lows.

The dead week will be worrying for a banking industry that relies on bumper January issuance to get off to a profitable start for the year. Bankers are concerned that the turmoil may have badly affected issuer confidence, which could prolong the current hiatus even if markets turn around.