Companies borrowed $1,500bn (€1,130bn) in the bond markets during the first quarter, but global merger and acquisition activity fell 36 per cent year on year.

Groups seen as relatively safe – in non-cyclical industries or with high credit ratings – took advantage of investor appetite for corporate debt, raising a record $825.6bn in the first three months of 2009, fuelled by a desire to cut reliance on bank lending.

That was more than double the $390.9bn they raised in the same period last year, according to data from Dealogic. However, the amount of worldwide M&A totalled just $524.9bn, marking the lowest level of activity since the third quarter of 2004, highlighting the difficulties companies are having in financing deals and valuing their targets.