European leveraged finance issuance (leveraged loans and high yield bonds) decreased to €48.3 billion in 2Q’18, a 31.9% decrease from €70.9 billion in 1Q’18 and a 41.1% decrease from €82.0 billion in 2Q’17. The issuance volume for 2Q’18 was the lowest quarterly total since 1Q’16. This quarterly decrease was driven by a 48.3% decrease in leveraged loan issuance, while issuance of high yield bonds decreased by 0.6%.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, decreased to €24.1 billion in the second quarter of 2018, a 48.3% decrease from €46.6 billion in 1Q’18 and a 49.3% decrase from €47.4 billion in 2Q’17.

Primary high yield issuance totaled €24.2 billion on 58 deals in 2Q’18, a 0.6% decrease from €24.4 billion on 68 deals in 1Q’18 and a 29.9% decrease from €34.5 billion on 86 deals in 2Q’17.

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