An industry survey of obstacles in the European funding markets and potential solutions.

This report was commissioned by the AFME and published in June 2013.

The report's findings were designed to offer constructive recommendations to the debate prompted by the European Commission’s Green Paper on the long term financing of the real economy.

The report focuses on barriers to funding and what could be done to improve availability of funding for growth. While overall macroeconomic uncertainty is highlighted as a key constraint, the report did not seek to address this issue, as it was a complex policy field already being considered by many stakeholders.

The report was driven by a working group comprising AFME staff and members, and written by Oliver Wyman and the working group. The document is separate from AFME’s response to the Commission’s Green Paper consultation on Long Term Financing of the European Economy, dated March 2013.

The findings contained within the report are interview-based and industry led. The report captures and seeks to articulate the collective views from users and providers of funding, including large corporates, mid-sized corporates, SMEs, various types of investors, and banks.

To provide the evidence base for this report, Oliver Wyman has conducted interviews with 75 firms across eight European countries, involving over 100 of their employees and almost 120 interview hours. Interviews have been supplemented with specific input from some survey respondents as well as research and technical detail provided by Oliver Wyman, AFME and its members so as to provide further context.

Annual revenues for corporates interviewed total approximately €400 billion, ranging from €1.2 million to €110 billion. European assets under management of investors interviewed total more than €1.7 trillion. AFME member firms underwrite, distribute and trade the vast majority of the €1.1 trillion of new debt, equities and syndicated loans distributed in Europe in 2012, so are well placed to understand the funding needs of corporates and investors.