European Corporate Bond Sales Plunge

Issuance is lowest in six years amid growing distrust of banks.

European companies are selling the fewest bonds in six years as the sovereign crisis sidelines cash-rich treasurers increasingly wary of the region’s banks.

Volkswagen AG, Europe’s largest automaker, Italian power company Enel SpA and Renault SA led 80 billion euros ($107 billion) of bond sales this year, the smallest amount since 2005, according to data compiled by Bloomberg. Borrowers may cut sales further next year to a euro-era record low of 70 billion euros, Societe Generale SA estimates.

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