European Chart of the Week: 16th August 2019
B rated issuance has dominated in both the European and US institutional loan markets this year. This trend is even more pronounced in Europe, accounting for 84% of institutional loan volume year-to-date, compared to 59% in the US.
In turn, Europe has a lower share of Ba rated loans (15%) versus the US (33%). Both markets continue to be tilted in favor of borrowers, with Ba/BB issuers particularly welcomed by lenders. Staying with the Ba/BB side of the market, prepayment speeds in this segment have been an area of focus in the US recently, with a buysider highlighting, “This is challenging for the market because CLOs really need BBs to make the ratings math work, and when you start to see those prepaying, it becomes challenging to keep the ratings mix right, as the market has already become quite skewed to single-Bs.”
-Colm (CJ) Doherty colm.doherty@acuris.com For access to our comprehensive news, analysis and data on the global loan and bond markets, please subscribe to Debtwire Par.
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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