European leveraged finance issuance (leveraged loans and high yield bonds) fell in 4Q’13, with EUR 42.87 billion issued, a 21.5% decrease quarter-over-quarter (q-o-q) but a 5.9% increase year-over-year (y-o-y). The decline q-o-q stems from a decrease in leveraged loan lending, which experienced a surge during the third quarter of 2013. Due to the drop in leveraged loan issuance, the high yield share of the leveraged finance market rose to 53.1%, up from 36.6% in 3Q’13.

For the full year 2013, leveraged finance issuance was EUR 210.12 billion, up 55.3% from the prior year (EUR 135.3 billion), and a six year high. While leveraged loan issuance continues to remain below pre-crisis norms, high yield issuance continues to reach new highs, with full year issuance of EUR 105.7 billion exceeding the high of EUR 66.1 billion in 2012.

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
• AVP, Research: Sharon Sung