European Chart of the Week: 16th September 2019
Though Western European leverage loan issuance has slowed this year, market conditions have been mostly accommodative, with over EUR 70bn of syndicated institutional loan issuance pushing maturities out further.
At the start of the year, just 3% of term loans had a maturity date from 2026 onwards. This has now climbed to 16% on the back of new loan issuance. Looking at a longer time frame, over 90% of outstanding term loans currently are scheduled to mature from 2022 onwards, while over 70% are in the 2024 and beyond time period.
Not surprisingly, loans that are closer to maturity are generally trading at bigger discounts to par in the secondary market, reflecting difficulties some borrowers may be facing, whereas loans with a maturity date further out the spectrum are more recently issued loans and so are trading closer to 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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