Stepping back: How has access to capital changed? by Tanya K. Hahn, CPA

Day-to-day, minute-to-minute focus on the capital markets can make it harder to see where we are today compared to where we were at the height of (one hopes) the market fallout in the United States. The capital markets—which include long-term securities such as stocks, bonds and mortgages—have obviously not stabilized. Yet there has been some improvement since a low point in 2008, when investors were playing hot potato with variable interest rate bonds, and some banks turned away depositors and borrowers and closed their doors—permanently.

Borrowers with outstanding debt and those planning on issuing bonds or notes in the near future are in a slightly better position in summer 2009 compared to fall 2008, though they may look wistfully back at 2007. The overall landscape of both variable-rate bonds/notes and fixed-rate debt has changed (see the glossary of terms on page 54 for explanations), and much of this can be understood through changes in the banking world over this short period of time.