Yield-hungry investors help French firms snub banks for loans

April 21, 2015 2:15 PM

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PARIS, April 21 (Reuters) - French firms traditionally hooked on bank loans are increasingly turning to private debt placements, joining rivals in the United States and Germany where similar markets for loans sold by a company to a single or small group of investors have long thrived.

For mid-sized companies less able to tap mainstream bond markets, private placements open up the possibility of borrowing longer-term at relatively low rates, while for lenders such as insurance companies they appeal at a time of rock-bottom bond yields.

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