European leveraged finance issuance (leveraged loans and high yield bonds) closed on an extremely soft note, with EUR 9.3 billion issued in the fourth quarter of 2011, a decline of 57.2% and 54.4%, respectively, from Q3’11 (EUR 20.3 billion) and Q4’10 (EUR 21.6 billion). The continued financial market strain due to the ongoing sovereign debt crisis and weak macroeconomic backdrop continued to dominate in the fourth quarter. While the full year 2011 issuance was 118.5 billion, a 26.5% increase from 2010, the increase stems largely from a strong first half of the year before the market shutdown in the second half.

Market share of high yield bond issuance increased to 39.7% in Q4’11 (compared to 22.0% in Q3’11). For the full year, however, high yield bond issuance reached a new high, with EUR 49.7 billion issued, an 11.6% increase from the previous high in 2010 (EUR 44.6 billion).

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, Gary Simmons

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Director: Sharon Sung