The Italian Corporate Bond Market: A Step Towards Disintermediating the Banking System: Intek Group Case Study

Maria Vittoria Gallo

Student thesis: Master thesis

Abstract

The present work focuses on the development of the Italian corporate bond market, as part of the overall process of banking disintermediation in place in most of the developed economies. The Big Crisis, that hit the global economy from September 2008 and brought it to its knees, posed serious consequences on the already fragile Italian economy, characterized on one side by the predominant existence of Small and Medium Enterprises and on the other by the dominant role of banks as supplier of financing.
Throughout a close examination of the trends in place in the corporate bond market, of the effects that the Big crisis posed on its development and of the key drivers that spurred its growth, this study sets out to investigate if the corporate bond instrument is already recognized as a meaningful alternative to bank loans for Italian firms in need of financing. Hurdles preventing this transition to happen are also outlined and discussed, in order to present a more complete framework.
To support the present work, a Case Study of an Italian listed mid-cap firm, Intek Group SpA, is analyzed. This company successfully managed to take advantage of this debt instrument demonstrating the suitability of corporate bonds to meet different needs.

EducationsMSc in Finance and Strategic Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2016
Number of pages95
SupervisorsFinn Østrup