Our latest study currently being conducted for the City of London Corporation investigates the development of credit markets across the world and identifies appropriate policy measures and reforms which will enable market expansion and growth via increased international accessibility.
Credit markets have become crucial instruments in fostering on-going global growth since the 2008 crisis; this emerging phenomenon has been driven in part by quantitative easing programmes and increasing emerging market appetite for credit.
The City of London Corporation commissioned us to conduct a study which would produce a staged model of credit market development with correlate policy lessons across and within different stages of development.
We have begun to distinguish credit markets by their potential scope for growth vis-à-vis their capability to grow. Looking at credit markets this way will enable us in our final report to map an empirical journey of changes in national policy priorities whereby as scope for growth and capability to grow change, so too does the attendant policy mix geared to facilitating growth and expansion. This policy map will help us to generate policy recommendations which directly pertain to the stage of development a particular credit market is at.
We have paid close attention to the imminent establishment of an integrated (European) Capital Markets Union (CMU) and to London’s geo-economic relationship to the CMU.
We have focused on innovative and nascent credit markets, and we will be providing substantive recommendations to the City of London Corporation on how London can be made instrumental in the development of these markets.
The study has delivered a comprehensive scoring of the development of 59 countries (accounting for 87% of global GDP) across seven key components of effective and functioning credit markets. We have also disaggregated the data by region and debt maturity profile. The report is due for publication in spring 2016; we will be highlighting the final results here on our website too.