AFME Leveraged Loan and High Yield Report, Fourth Quarter 2017

European leveraged finance issuance (leveraged loans and high yield bonds) increased in 4Q’17 to €103.6 billion, more than double the €48.0 billion in 3Q’17 and a 80.4% increase from €57.4 billion issued in 4Q’16. Fourth quarter issuance was equally as robust in the leveraged loan sector (128.2% increase quarter over quarter) as it was in the HY sector (98.3% increase quarter over quarter) The high yield bond share of the leveraged finance market decreased to 37.1% in 4Q’17, down from 40.4% in 3Q’17 but up from the 26.2% share in 4Q’16.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, increased to €65.2 billion in the fourth quarter of 2017, up 128.2% q-o-q (€28.6 billion in 3Q’17) and up 53.8% y-o-y (€42.4 billion in 4Q’16). For the full year 2017, €195.3 billion in leveraged loans were issued, up 37.9% from €141.6 billion in 2016 and the highest issuance volume since €239.7 billion in 2007.

Primary high yield issuance in 4Q’17 totaled €38.5 billion on 89 deals, a 98.3% increase from 3Q’17 (€19.4 billion on 50 deals) and a 155.4% increase from 4Q’16 (€15.1 billion on 41 deals). For the full year 2017, primary high yield issuance totaled €129.1 billion, up 57.3% from €82.1 billion in 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 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
  • Associate Director, Research: Julio Suarez

SIFMA Research

  • Managing Director, Director of Research: Kyle Brandon
  • Assistant Vice President: Justyna Podziemska