European Chart of the Week: 7th April 2020
After a tumultuous month of March when high yield bond and leveraged loan prices dropped precipitously, prices have come off their recent lows, moving higher in the last 10 days. High yield bonds fell 22 points and loans 19 points in the space of only a month as the coronavirus pandemic took hold and large swathes of the global economy shut down. However, the latter part of March saw bonds and loans reclaim some lost ground, gaining roughly five points and three points, respectively. In turn, the yield on the ICE BofA Euro High Yield Index has declined to 6.91% from its recent high of 8.1%.
High yield bonds lost 13.21% in March, with BB credits down 11.26%, single-B’s off 17.37%, and CCCs losing 19.91%. This translated into a loss of 14.66% in 1Q20. At the sector level, leisure was particularly hard hit given the closing of businesses and social distancing rules, with the sector posting a loss of 26.4% in March, while specialty retailers were down 20.4%. On the other hand, healthcare and media credits performed relatively better, down 5.5% and 8.21%, respectively.
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 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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