Market Insight: Can the rally end the crisis?

Market Insight: Can the rally end the crisis?

By Lena Komileva

Published: September 16 2009 16:33 | Last updated: September 16 2009 17:14

A flurry of M&A news and corporate issuance on the first anniversary of Lehman Brothers’ bankruptcy has strengthened optimism about credit quality in the capital markets, infusing energy into the equity and corporate bond rallies.

With the MSCI World equities index gaining more than 60 per cent since March and corporate bond and structured credit risk spreads narrowing by a similarly impressive margin, this begs the question: can the capital markets recovery of 2009 end the liquidity crisis in the real economy?

http://www.ft.com/cms/s/0/21925f04-a2d4-11de-ba74-00144feabdc0.html