European leveraged finance issuance (leveraged loans and high yield bonds) increased in 3Q’16 to EUR 53.3 billion, a 2.3% increase from EUR 52.1 billion in 2Q’16 and an 80.3% increase from EUR 29.6 billion in 3Q’15. The quarterly surge stems from the large increase in leveraged loan issuance, which increased by 45.4% in the third quarter of 2016 while high yield bonds issuance decreased by 25.3%; the high yield bond share of the leveraged finance market decreased to 44.5%, down from 61.0% in 2Q’16 but slightly up from 44.1% in 3Q’15.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, increased in the third quarter of 2016 to EUR 29.6 billion, up 45.4% q-o-q (EUR 16.5 billion in 2Q’16) and 78.9% up y-o-y (EUR 25.2 billion in 3Q’15).

Primary high yield issuance in 3Q’16 totaled EUR 23.7 billion on 41 deals, a 25.3% decrease by euro amount from 2Q’16 (EUR 31.8 billion on 54 deals) but a 20.6% increase from 2Q’15 (EUR 13.0 billion on 34 deals). High yield bond issuance decreased q-o-q in both developed and emerging market Europe in the third 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