European leveraged finance issuance (leveraged loans and high yield bonds) decreased in 3Q’15 to €23.7 billion, a 56.9% decrease from €55.0 billion quarter-over-quarter (q-o-q) and a 39.3% decrease from €39.0 billion in 3Q’14. The quarterly decrease stems from the large fall in high yield bond issuance, which decreased by 71.2% in the third quarter of 2015 while the leveraged loan issuance decreased by 40.0%; the high yield share of the leveraged finance market decreased to 36.2%, down from 54.2% in 2Q’15.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, declined in the third quarter of 2015 to €15.1 billion, down 40.0% q-o-q (€25.2 billion) and down 28.4% y-o-y (€21.1 billion). Amend-and-extend (“A&E”) transactions continue to take place and accounted for 10.8% of deals in the third quarter of 2015 (€1.6 billion), an 88.9% decrease from the second quarter’s €14.7 billion.

Primary high yield issuance in 3Q’15 totalled €8.6 billion on 31 deals, a 71.2% and 52.1% decrease by euro amount, respectively, from 2Q’15 (€29.8 billion on 55 deals) and 3Q’14 (€17.9 billion on 46 deals). Issuance from developed market Europe decreased in the third quarter of 2015 while the issuance from emerging market Europe increased.

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

• Gary Simmons, Director, Capital Markets

SIFMA Research

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