European leveraged finance issuance (leveraged loans and high yield bonds) increased to €41.9 billion in 1Q’19, a 19.0% increase from €35.2 billion in 4Q’18 but a 53.8% decrease from €90.6 billion in 1Q’18. This quarterly increase was driven solely by an increase in high yield bonds issuance, while issuance of leveraged loans declined. The high yield bond share of leveraged finance market issuance increased to 40.5% in 1Q’19, up from only 19.7% in 4Q’18 and up from 27.5% in 1Q’18.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, decreased to €24.9 billion in the first quarter of 2019, a 11.9% decrease from €28.2 billion in 4Q’18 and a 62.1% decrease from €65.7 billion in 1Q’18.

Primary high yield issuance totaled €17.0 billion on 38 deals in 1Q’19, a 145.1% increase from €6.9 billion on 22 deals in 4Q’18 but a 31.9% decrease from €24.9 billion on 71 deals in 1Q’18.

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 bonds 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
• Director, Research: Julio Suarez

SIFMA Research

• Vice President: Katie Kolchin, CFA
• Assistant Vice President: Justyna Podziemska