European Chart of the Week: 23rd September 2019
A backdrop of strong market technicals has pushed the secondary loan market to loftier levels in recent weeks. The share of institutional loans bid in the par-plus area has climbed sharply to 58%, up from 40% a month earlier, and its highest level since November 2018. At the same time, the average bid has climbed to 98.47.
Limited new loan supply in the primary market recently, allied with continued demand for loans from CLOs has put upward pressure on the secondary market.
While there are a number of loan deals currently working their way through the market, institutional loan issuance has totaled just EUR 2.2bn since the start of September and only EUR 1bn of this was for new money purposes. At the same time, European CLO formation has continued apace, with 2 new deals last week amounting to EUR 780m, taking year-to-date new issue volume to EUR 23.6bn, well ahead of the roughly EUR 20bn posted at the same point last year. On top of this, another three new-issue deals are set to pricesoon, according to Creditflux.
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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