Pension funds should seize the opportunity to step into lending

Many pension schemes in Europe are either too small or insufficiently skilled to offer large loans

Markets abhor a vacuum and there is no shortage of asset managers and specialists trying to supplement the banks as lenders of first resort.

European bank assets could shrink $4.5 trillion this year, according to the International Monetary Fund. Collateralised loan obligations worth €45bn will expire over the next 18 months.

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