The rebound in the high yield market this month, coupled with a slow loan market, meant European high yield issuance outstripped institutional leveraged loan issuance in April for the first time since October 2017.  

Monthly high yield volumes were also atan eight-month high as petrol station operator EG, pizza delivery franchise operator Telepizza, supermarket chain Tesco,telecommunications operator Eir, PE firm Kistefos, electronics operator FNAC,online gaming & betting company WilliamHill and online streamer Netflix all hit the market in April. Improved sentiment for high yield paper saw issuance consistently climb month-on-monthto EUR 9.2 billion, from last December's three-year low. 

But overall issuance in both markets are down year-on-year. Combined high-yield issuance in the first four months of theyear was EUR 19.2bn, down 33% from EUR 28.6bn in the same period in 2018.Institutional loan volumes had an even larger fall to EUR 22.1bn, representinga 44% decline from EUR 39.3bn during the same time last year. 

The second half of the year, however, may offer more opportunity to loan investors. DebtwirePar's European M&A pipeline calendar is showing roughly EUR 54.5bn of funding requirements in the near term.

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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.