on IR.on Aktiengesellschaft
SME Bond Market Growth in 2024: Increased Issues and Reduced Defaults
In 2024, the German SME bond market experienced significant recovery, as reported by IR.on AG. The number of bond issues increased to 33 from 24 in 2023, marking a 38% rise. The volume placed with investors went up by 39% to EUR 1.10 billion. The average annual coupon rate decreased to 8.14% from 8.64% the previous year, influenced by the lower interest rate environment.
The default volume saw a substantial decline, dropping to EUR 60 million from EUR 340 million in 2023. The most active sector was financial services with seven issues. This recovery underscores a stabilization in the SME bond market, noted by Frederic Hilke of IR.on AG.
Looking ahead to 2025, banks expect a slight decline in SME bond issues, maintaining stable coupon rates. Economic conditions and political uncertainties are factors tempering market optimism. The focus may turn to sustainable bonds and increased transparency requirements.
R. E.
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