Corporations are approaching debt-related investor communications with renewed focus, as more buy-side firms develop dedicated fixed-income analytical teams, according to new research.

In its first extensive European Debt IR benchmarking study, Global IR agency Taylor Rafferty (Europe) has found a significant shift in attitudes towards debt IR from both issuers and investors.

The study reveals a significant upgrade in corporate focus on debt-related IR with senior management increasingly involved and debt IR and equity IR efforts becoming converged.

The need for better communications in this area is heightened by a loss of investor confidence in ratings agencies. This has led many buy-side firms to develop in-house fixed-income analytical teams. European corporates are now experiencing an explosion of debt related questions from both debt and equity investors, and levels of corporate bond issuance in 2009 are set to break all previous records.

In this first in-depth study of changing attitudes in this area, Taylor Rafferty conducted interviews with 19 of Europe’s largest bond issuers and solicited the views of a number of key debt investors to understand the evolution in buy-side requirements and expectations in light of the current market turmoil. The series of hour-long interviews took place between August and November this year.

“Our ongoing provision of advice on debt investor relations throws into relief large discrepancies; both in the expectations of the investors and the behaviour of the issuers,” said Rob Newman, managing director of Taylor Rafferty (Europe). “One size does not fit all. However, it is clear that addressing this audience in a systematic and timely manner is essential.”