Asset managers, led by Anthony Bolton of Fidelity International and Alan Brown of Schroders, have warned the wave of rights issues by financial institutions risks swamping the market, spelling disappointment for companies that leave it too late and potential disruption to the rest of the market.
European companies have completed $15bn (â¬9.7bn) of rights issues this year and there are at least seven more announced deals in the pipeline, expected to raise an extra $80bn, according to data provider Dealogic. This running total of $95bn is more than the total value of rights issues of $71bn last year.
