Bonduel Asset Management

Asset Management Boss Warns UK Public Firms of Global Corporate Insolvency Crisis Post Covid-19 Lockdown

Asset Managers are Unable to Deliver Enough Cash to Keep Firms Afloat despite Having Huge Cash Piles

 

London, UK -- (SBWIRE) -- 09/28/2020 -- Harry Jenkins, V.O.F. Executive of Bonduel Asset Management warns the public firms in the UK of global corporate insolvency crisis post Covid-19 lockdown. Jenkins who oversees £1bn in client funds says that many businesses will be in dire need of capital in order to neutralize their high debt levels that have been accumulated due to the ongoing pandemic, not to forget the minimal business operations. These businesses will need access to funds, however, the asset management industry will not be able to fund these businesses on a large scale to solve the solvency problem. Jenkins expects that most of the debt has be written off and if it doesn't the balance sheet will have a disappointing effect.

'If you don't want that drag from the overhand to depress the recovery, you have to think about the plan to recapitalize. The industry can support a high proportion of that, but I don't think it can do all of that recapitalization", says Jenkins. There has been a surge in UK's fundraising campaigns as companies are striving hard to find a solution to their cash flow problems. PrimaryBid, a tech platform also shares that over 50 share placings have occurred in July and August and more companies are to join the bandwagon of selling their share months ahead so as to balance their debt equity ratio. And then there are other companies who will try to take advantage of the situation by building up their cash to buy the struggling businesses.

To know more visit https://bonduelassetmanagement.com/en/

About Bonduel Asset Management
Bonduel Asset Management is an active asset management company with a global reach. With a multi-boutique approach, this company is backed by specialized investment talent, robust risk management and a strong performance culture.

Media Contact
Bonduel Asset Management
Website: https://bonduelassetmanagement.com/en/