European Chart of the Week: 9th April 2020
Leveraged term loans have continued to creep higher in the secondary market this week, adding another 1.7 points to reach an average bid of 82.53. Though not a dramatic appreciation this week, loans have now recouped over 5 points since hitting their low on March 24 but remain 14.5 points below their level at the start of February. Loan prices remain widely dispersed, with 26% of credits in the sub-80 area, 37% in the 80-90 range and 37% in the 90-plus price segment.
Hard hit sectors like entertainment & leisure and retailing have also moved higher, though they have lagged the wider market and remain much more deeply discounted than other sectors. Entertainment & leisure credits are now bid at 75 on average, up 4.60 points from their bottom, while retailing is at 73, up only 1.65 points.
Better performing sectors include telecom at an average bid of 94, a gain of 8 points since March 24, and healthcare which is at 88.70, a gain of over 7 points in the same time period. The food & beverage sector has also performed relatively well, gaining 6.5 points to 86.50.
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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