Cheer for DCM lawyers as sovereign issuers set to pick up where corporates left off

As corporate activity begins its long-awaited recovery in the aftermath of the financial crisis, life certainly promises to be eventful for debt capital markets (DCM) lawyers – which is a considerable improvement on last year. The consensus from deal lawyers is that the debt market is also showing signs of life. New data from Thomson Reuters highlights a healthy revival in DCM activity around the globe, with the first quarter of the year seeing a 37% rise in activity on the last three months of 2009. While Q1 global DCM activity was still down by 10% on the equivalent period last year, the market is no longer entirely driven by companies seeking funding because they have no alternative.

"It has been a bizarre market. With so many changes to the bond market it has been important to have a broad practice and skill set, both as a firm and as a lawyer, to handle it," says Linklaters London head of equity capital markets (ECM) and DCM, Carson Welsh (pictured). Corporates, especially financial institutions, are now embarking on the refinancing processes that inevitably follow a deep downturn – a cycle likely to continue for at least the next two to three years.