European Chart of the Week: 22 April 2019
The European secondary loan market strengthened in the first half of April, climbing to its highest level since last November.
Appetite from CLOs has been robust recently, providing the backbone of demand for the loan asset class, with new CLO deals continuing to come to market and issuance topping the amount seen at this point last year. On the supply side, leveraged loan activity in the primary market is down markedly year-over-year, thus also contributing to technical pressures in the secondary market.
After gaining in both January and February, in the aftermath of the 4Q18 decline, loan prices softened in March but have shown renewed momentum in April. The average bid on institutional term loans is up 50 bps this month to 98.35 and the par-plus share has jumped by 17 percentage points to 30%.
On an overall return basis, this month’s price appreciation has pushed the year-to-date return to 2.65% as of April 14, according to Credit Suisse.
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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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