European leveraged finance issuance (leveraged loans and high yield bonds) increased in 2Q’16 to EUR 52.1 billion, a 22.0% increase from EUR 42.6 billion in 1Q’16 and a 6.5% decrease from EUR 55.7 billion in 2Q’15. The quarterly surge stems from the large increase in high yield bonds issuance, which increased by 195.6% in the second quarter of 2016 while leveraged loan issuance decreased by 36.3%; the high yield bond share of the leveraged finance market increased to 61%, up from 25.2% in 1Q’16 and up from 54.8% in 2Q’15.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, decreased in the second quarter of 2016 to EUR 20.3 billion, down 36.3% q-o-q (EUR 31.9 billion in 1Q’16) and 19.2% down y-o-y (EUR 25.2 billion in 2Q’15).

Primary high yield issuance in 2Q’16 totaled EUR 31.8 billion on 55 deals, a 195.6% and 4% increase by euro amount, respectively, from 1Q’16 (EUR 10.8 billion on 22 deals) and 2Q’15 (EUR 30.5 billion on 58 deals). High yield bond issuance increased in both developed and emerging market Europe in the second 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