Kraemer-Eis, Helmut Battazzi, Francesco Charrier, Remi Natoli, Marco Squilloni, Matteo
Year of Publication:
EIF Working Paper 2014/25
Against the background of the need for alternative or additional financing channels for SMEs, this paper analyses the market segment of Debt Funds. Often, the need for alternative financing mechanism and the increase of non-bank lending / bank-disintermediation is voiced – the text provides recent examples of and reasoning for this. The concept of Debt Funds is presented and the split between Diversified Funds and Selective Funds is introduced. The main chapter gives a range of examples for Debt Funds and related initiatives to enhance the (SME-) financing via non-bank sources, private initiatives as well as publicly supported initiatives – covering the two groups, mentioned before. Moreover, this chapter presents the emerging market segment of the so-called SME bonds (which forms itself the basis for SME bond funds (as well classified as Debt Funds), with examples from Germany, Italy, France, Spain, and the UK. The chapter "Debt Funds on the road" presents some statistics based on various databases (and explains their limited explanatory power)...