European Chart of the Week: 6th September 2019
Western European leveraged loan and high yield bond activity slowed sharply in August amid the summer holiday season. Leveraged loan volume totaled only EUR 7.7bn, with institutional loan issuance accounting for EUR 6.9bn of the total. The drop in high yield bond issuance was even more pronounced, amounting to only EUR 2.1bn in August. The August summer holiday slowdown comes as no surprise given it is an annual occurrence, though the market was relatively quieter this year, with high yield bonds off 19% from the corresponding month last year and leveraged loan deal flow down 4%.
Recent deal flow has left leveraged loans down 13% year-over-year at EUR 129bn, while in contrast, high yield bond volume is flat yearover-year at EUR 57bn, aided by a jump in refinancing activity. Compared to the same period last year, European institutional loan issuance is down 12%, while the US institutional market is off over 54%. However, on a new money basis, the drop is slightly more pronounced in Europe, down 19% year-over-year compared to 14% in the US.
-Colm (CJ) Doherty colm.doherty@acuris.com
For access to our comprehensive news, analysis and data on the global loan and bond markets, please subscribe to Debtwire 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.
Get these unique insights and more with Debtwire
Debtwire gives fixed income professionals an edge in leveraged finance, distressed debt and direct lending.
An error occurred trying to play the stream. Please reload the page and try again.
Close
