Company Bond Sales Plunge as Trust in Banks Fades: Euro Credit

European companies are selling the fewest bonds in six years as the sovereign crisis sidelines cash-rich treasurers increasingly wary of the region’s banks.

Volkswagen AG, Europe’s largest automaker, Italian power company Enel SpA and Renault SA led 80 billion euros ($107 billion) of bond sales this year, the smallest amount since 2005, according to data compiled by Bloomberg. Borrowers may cut sales further next year to a euro-era record low of 70 billion euros, Societe Generale SA estimates.