The Western European institutional loan (term loan B) market finished 2019 at EUR 116bn of issuance, up 4% versus 2018. The headline number was boosted by a 32% climb in refinancings/repricings to EUR 51bn, but more importantly from a net new issuance perspective there was a 14% decline in new money volume to EUR 63bn. Overall, leveraged loan issuance edged up 1% to EUR 204bn in 2019, though there was a 4% fall in new money transactions. Demand for leveraged loans was robust in 2019, with CLOs and separately managed accounts continuing to grow. 

On the high yield bond side, it was a good year for deal flow, with issuance jumping by 29% to EUR 92n in 2019. Over half of this deal flow was earmarked to refinance existing debt. The last three quarters of the year were consistent in terms of deal flow, operating in the EUR 26-27bn range. On a monthly basis, the September-November time period was particularly robust, accounting for 3 of the 4 busiest months of the year. Notably, this three-month period posted the highest level of issuance since 4Q17.

From a total return perspective, the Credit Suisse Western European loan index gained 5.03% in 2019, easily topping the 2018 return of 0.51%. Euro high yield bonds returned 11.3% in 2019, rebounding from the loss of 3.66% in 2018, according to ICE.

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.