There is no doubt that the European debt market offers an interesting window of opportunity for debt providers in Europe. A significant mismatch looms on the short term as fund managers and other players scramble to put in place new debt vehicles in a bid to provide relief to investors parched by the property financing drought. Looking forward, it is inevitable that Europe will follow in the footsteps of the US debt market where the balance between financing provided by traditional sources and alternative lenders is about equal. In the US about 50% of the debt is provided by banks while the rest is provided by other institutions and alternative lenders. In Europe, as much as 90% of the debt is still provided by the banks.
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