12/6/19: Credit Markets vs Banks Loans: Europe vs US

Related to the earlier post on investment markets composition by intermediary (see: https://trueeconomics.blogspot.com/2019/06/12619-investment-intermediaries-europe.html), here is more evidence, via @jerrycap of the massive share of intermediated debt / banks dependency in European markets:

A caveat worth noting: European data includes the UK, where equity markets and hybrid financing are both more advanced than in the Continental Europe, which suggests that the share on non-bank share of debt markets is even smaller than the 25% currently estimated.

12/6/19: Investment Intermediaries: Europe vs U.S.

Investment markets intermediaries by type and origin (via @schuldensuehner):

Caveat: In the case of Ireland and Switzerland, the data is not representative of the domestic markets.

Loads of interesting insights, but one macro-level important is the role of the non-banking investment players, especially domestic ones, in the economies of the U.S. and Germany, Italy, Spain and France. This highlights the huge role of direct investment channels (equity, debt, hybrids) in the U.S. market and the corresponding weight of intermediated bank debt in Europe. We highlight this anomaly and the failures of the EU to diversify capital funding channels

• In our paper here: Gurdgiev, Constantin and Lyon, Tracy Lee and Cohen, Alexandra and Poda, Margaret and Salyer, Matthew, Capital Markets Union: An Action Plan of Unfinished Reforms (March 21, 2019). with Tracy Lee Lyon, Alexandra Cohen, Margaret Poda and Matthew Salyer (Middlebury Institute of International Studies at Monterey (MIIS); GUE/NGL Group, European Parliament, Policy Analysis Paper, March 2019. Available at SSRN: https://ssrn.com/abstract=3357380 and 
• In a recent article for the LSE Business Review here: https://trueeconomics.blogspot.com/2019/05/27519-lse-business-review-capital.html.