European Chart of the Week: 10th June 2019
The lack of steady issuance in the European primary loan market has at times this year pushed lenders into the secondary market to buy paper, but the supply picture has improved recently, leading to less upward pressure on the secondary market. After climbing in April by 55bps, the secondary loan market was relatively stable in May, moving marginally higher by 5bps to an average bid of 98.46.
The European market remains more highly bid than the US secondary market, with the average bid in Europe now at 98.45, topping the US level of 96.48.
Looking at the upper end of both markets further emphasizes this, with 33% of European institutional loanscurrently bid above par compared to only 7% in the US.
The European market has also been relatively less volatile than the US market in the past year, falling less in 4Q18 and also rebounding to a lesser degree in 2019 to date. This is reflected in total returns, with the US market posting a gain of 5.19% year-to-date through May versus 2.98% in Europe, according to Credit Suisse data. -Colm (CJ) Doherty colm.doherty@acuris.com
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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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