European leveraged finance issuance (leveraged loans and high yield bonds) decreased in 1Q’16 to EUR 22.6 billion, a 12.0% decrease from EUR 25.6 billion quarter-over-quarter (q-o-q) and a 62.5% decrease from EUR 60.1 billion in 1Q’15. The quarterly decrease stems from the large fall in high yield bonds issuance, which decreased by 24.1% in the first quarter of 2016 while leveraged loan issuance increased by 2.9%; the high yield bond share of the leveraged finance market decreased to 47.3%, down from 54.9% in 4Q’15 and down from 62.8% in 1Q’15.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, increased in the first quarter of 2016 to  11.9 billion, up 2.9% q-o-q (EUR 11.6 billion in 4Q’15) but 46.9% down y-o-y (EUR 22.4 billion in 1Q’15).

Primary high yield issuance in 1Q’16 totaled EUR 10.1 billion on 21 deals, a 24.1% and 71.7% decrease by euro amount, respectively, from 4Q’15 (EUR 14.1 billion on 38 deals) and 1Q’15 (EUR 37.7 billion on 65 deals). High yield bonds issuance decreased in both developed and emerging market Europe in the first quarter of 2016.

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