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European chart of the week: High-yield bond market off to a strong start in 2020

European Chart of the Week: 10th February 2020

Western European borrowers issued EUR 11.6bn of high yield bonds in January, topping the corresponding month in 2018 (EUR 7.5bn)and 2019 (EUR 2.1bn). January issuance was only 11% lower than the most active month seen last year, in October. So far in early February, another EUR 1.9bn of deals have priced.

Refinancing activity was the top use of proceeds in January, accounting for nearly half of deal flow (EUR 5.8bn). Notably, however, a sizeable chunk of bond issuance (28%) was used to pay down loans. In fact, the EUR 1.15bn bond issued by TechemGmbH to refinance its existing TLB was one of the largest single issuances of the month. 

Similar tothe loan market, bond deals mostly priced at the tight end of or inside initial guidance, pulling the weighted average yield toa recent low of 2.8% across secured and unsecured euro-denominated paper.

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.

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.

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