European leveraged finance issuance (leveraged loans and high yield bonds) decreased in 4Q’15 to EUR 25.6 billion, a 13.3% decrease from EUR 29.6 billion quarter-over-quarter (q-o-q) and a 5.4% decrease from EUR 27.1 billion in 4Q’14. The quarterly decrease stems from the large fall in leveraged loan issuance, which decreased by 30.0% in the fourth quarter of 2015 while high yield bonds issuance increased by 8.0%; the high yield share of the leveraged finance market increased to 54.9%, up from 44.1% in 3Q’15.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, declined in the fourth quarter of 2015 to  11.6 billion, down 30.0% q-o-q (EUR 16.5 billion) and 38.7% y-o-y (EUR 18.9 billion). In full year 2015, EUR 75.7 billion in leveraged loans was issued, down 20.9% from EUR 104.5 billion in 2014.

Primary high yield issuance in 4Q’15 totaled EUR 14.1 billion on 38 deals, an 8.0% and 70.7% increase by euro amount, respectively, from 3Q’15 (EUR 13.0 billion on 34 deals) and 4Q’14 (EUR 8.2 billion on 27 deals). Issuance from developed market Europe decreased slightly in the fourth quarter of 2015 while issuance from emerging market Europe increased. In full year 2015, EUR 95.4 billion in high yield bonds were financed, a decrease of 13.4% from EUR 110.1 billion in 2014.

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

• Managing Director, High Yield and Prime Services: Gary Simmons

SIFMA Research

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