European leveraged finance issuance (leveraged loans and high yield bonds) rose in 2Q’14, with EUR 93.6 billion issued, a 103.1% increase quarter-over-quarter (q-o-q) and an 88.3% increase year-over-year (y-o-y). The increase q-o-q stems from the increase in high yield bond issuance, which experienced a surge during the second quarter of 2014, despite continued turmoil in eastern Europe; the high yield share of the leveraged finance market rose to 62.2%, up from 56.1% in 1Q’14.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, rose in the second quarter to EUR 35.4 billion, up 75.2% q-o-q (EUR 20.2 billion) and 80.2% y-o-y. Amend-and-extend (“A&E”) transactions continue to take place, with slightly less than a quarter of deals in the second quarter structured as such (21.4% by euro amount), a decrease from the first quarter (30.9%).

Primary issuance in 2Q’14 totalled EUR 58.21 billion on 107 deals, an increase of 125.0% and 93.7%, respectively, q-o-q and y-o-y. Issuance from developed market Europe rose in the second quarter but, given the lingering turmoil in eastern Europe, issuance from emerging market Europe fell.

About the Report

Done in partnership with AFME High Yield Division, the AFME Leveraged Loan and High Yield report is a quarterly report on the trends and statistics of the European leveraged finance market, including both high yield loans and leveraged loans. Issuance volumes, credit trends, global comparative issuance data, market highlights and commentary are included.

For more information on AFME’s efforts in the European leveraged finance sector, please visit AFME.

Credits

AFME

• Director, Capital Markets: Gary Simmons

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Senior Associate: Justyna Podziemska