Given the low level of overlap between Western European leveraged loan and high yield bond issuers this year, there are some notable differences in issuance by sector. 

While the industrial & chemicals sector tops the list for both leveraged loans (24% share) and high yield bonds (21% share), the second most active sector for leveraged loans is pharma, medical & biotech, which accounts for 13% of deal flow, compared to a lowly 1% of high yield bond issuance. Another notable difference is in the financial services sector, which accounts for only 4% of leveraged loan issuance year-to-date versus 18% of high yield bonds.

When narrowing down the leveraged loan market to look at the institutional loan segment, industrial & chemicals maintains the top spot (21%) but the second and third placed sectors are much closer, with both pharma, medical & biotech and business services representing 18% of deal flow.

Even though the industrial & chemicals sector tops both the institutional loan and high yield bond categories, the largest issuers in that sector are different in both markets. On the institutional loan side, the top 3 are JCI Power Solutions, Evonik Industries (Methacrylates) and Berry Global. For high yield bonds it’s Trivium Packaging, IHO Verwaltungsand ThyssenKrupp AG.

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.