European leveraged finance issuance (leveraged loans and high yield bonds) decreased in 2Q’17 to €72.9 billion, a 19.6% decrease from €90.6 billion in 1Q’17 but a 16.3% increase from €62.6 billion issued in 2Q’16. This was, however, the second highest quarterly issuance since 2Q’14 after the record issuance in 1Q’17. The quarterly decrease in 2Q’17 was mostly driven by a 31.3% decrease in leveraged loan issuance, while high yield bond issuance decreased by 1.9%.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, decreased to €37.4 billion in the second quarter of 2017, down 31.3% q-o-q (€54.5 billion in 1Q’17) but up 24.1% y-o-y (€30.1 billion in 2Q’16).

Primary high yield issuance in 2Q’17 totaled €35.4 billion on 79 deals, a 1.9% decrease from 1Q’17 (€36.1 billion on 78 deals) but a 9.1% increase from 2Q’16 (€32.5 billion on 56 deals).

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
• Manager, Research: Julio Suarez

SIFMA Research

• Managing Director, Director of Research: Kyle Brandon
• Senior Associate: Justyna Podziemska