European leveraged finance issuance (leveraged loans and high yield bonds) decreased to €62.8 billion in 1Q’18, a 39.9% decrease from €104.5 billion in 4Q’17 and a 30.6% decrease from €90.5 billion issued in 1Q’17. The quarterly decrease in 1Q’18 was driven by both a 41.5% decrease in leveraged loan issuance and a 37.1% decrease in high yield bond issuance. The high yield bond share of the leveraged finance market increased slightly to 38.7% in 1Q’18, up from 37.0% in 4Q’17 but down from 39.0% in 1Q’17.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, decreased to €38.5 billion in the first quarter of 2018, down 41.5% q-o-q (€65.8 billion in 4Q’17) and down 30.2% y-o-y (€55.2 billion in 1Q’17).

Primary high yield issuance in 1Q’18 totaled €24.3 billion on 77 deals, a 37.1% decrease from 4Q’17 (€38.6 billion on 103 deals) and a 31.1% decrease from 1Q’17 (€35.3 billion on 88 deals).

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 bonds 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
• Associate Director, Research: Julio Suarez

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Assistant Vice President: Justyna Podziemska