Incremental Credit Demand Pegged At $429B For 2014

Incremental demand for credit is estimated at $429 billion for corporates in 2014, according to a recent research by Citi.

Stephen Antczak and the team at Citi Research arrived at $429 billion for the whole market by considering flows in four sources viz.: Mutual Funds, Pensions, Life Insurance Companies and Corp Treasury Department.

The following graph captures incremental demand for corporates in 2014:

Credit mutual fund flows

Citi analysts point out that EPFR data reveals mutual fund flows in the corporate space have totaled $52 billion through November 2013, driven by inflows of $66 billion in the leveraged loan space. The unsecured space witnessed outflows of $14 billion...