The European share of combined US/Western Europe institutional loan issuance has held its ground this year, as the sharp fall in European issuance has echoed in the US market as well.  European institutional loan volume is at EUR 23.8bn (USD 27bn) year to date, compared to US volume of USD 130bn, giving it a 17% share of combined volume, up from 15% last year. It’s the same story when looking at new money deal flow, with European deal flow accounting for 18% of combined issuance.

Compared to the same period last year, European institutional loan issuance is down 44%, while the US market is off over 60%. Though on a new money basis, the drop in both markets is much less pronounced, down 15% year-over-year in Europe and flat in the US. Ona positive note, there have been some large cross-border deals this year, including JCI Power Solutions’ USD 7.7bn equivalent loan financing backing its buyout by Brookfield Business Partners (part of a USD 11.5bn equivalent combined loan and bond financing).

Looking at outstanding debt as opposed to issuance volumes, both the European and US loan markets have grown in recent years on the back of robust deal flow, with the US term loan market now at USD 1.3trn, over five times the size of the European market, which is currently around EUR 220bn.

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Colm (C.J.) Doherty Global Head of Primary Market Analysis Debtwire

Colm Doherty is Debtwire’s Global Head of Primary Market Analysis. He is responsible for leading the production of primary market analysis and reports focused on the leveraged loan and high yield bond markets. Prior to joining Debtwire, Colm was Director of Analysis at Thomson Reuters LPC covering leveraged loans, CLOs and high yield bonds.

Colm has a B.A. in Economics & Legal Science from National University of Ireland Galway and an MSc. in Accounting & Finance from Ulster University.