Europeans still invest much money into corporate debt

According to the Wall Street Journal Tuesday report, European investors are allocating their finances into corporate debt and risky bonds at a surprising rate. 

So $268 billion in corporate bonds, the highest level since at least 1995, were invested.

As Journal says, the appetite for bonds is rising all the way to some of the riskiest types of bonds, that is driving hopes the money could restart even the stagnant market for initial public offerings of stocks, that pretends to be key to any economic recovery.

Head of European equity capital markets at Morgan Stanley in London Emmanuel Gueroult stated that all the investors surprised by how quickly the market recovered as during the second half of 2008 Europe's capital markets slid steeply sharply.

Nevertheless, Wall Street Journal says, Europe's companies still get some 70% of their financing from banks, that may be compared to 30% in the U.S.