European leveraged finance issuance (leveraged loans and high yield bonds) more than doubled in 1Q’15 to EUR 57.7 billion, a 112.8% increase quarter-over-quarter (q-o-q) and a 25.2% increase year-over-year (y-o-y). The increase q-o-q stems from the large rise in high yield bond issuance, which more than quadrupled in the first quarter of 2015; the high yield share of the leveraged finance market increased to 61.2%, up from 30.4% in 4Q’14.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, increased in the first quarter of 2015 to EUR 22.4 billion, up 18.7% q-o-q (EUR 18.9 billion) and up 10.8% y-o-y (EUR 20.2 billion).

Primary high yield issuance in 1Q’15 totalled EUR 35.3 billion on 61 deals, an increase of 327.9% and 125.9%, respectively, q-o-q and y-o-y. Primary issuance in developed market Europe in the first quarter of 2015 was EUR 35.2 billion on 60 deals, a sharp increase of 365.6% and 42.1% by euro amount, respectively, q-o-q (EUR 4.6 billion on 23 deals) and y-o-y (EUR 24.8 billion on 61 deals). In emerging market Europe primary issuance in 1Q’15 was EUR 0.07 billion on 1 deal, a decline of 90.2% and 93.8% by euro amount, respectively, q-o-q (EUR 0.68 billion on 4 deals) and y-o-y (EUR 1.08 billion on 3 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 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