European leveraged finance issuance (leveraged loans and high yield bonds) increased to €59.9 billion in 2Q’19, a 31.6% increase from €45.5 billion in 1Q’19 but a 21.4% decrease from €76.2 billion in 2Q’18. This quarterly increase was driven mainly by a large increase in high yield bonds issuance in developed market Europe. The high yield bond share of leveraged finance market issuance increased to 48.4% in 2Q’19, up from 37.6% in 1Q’19 and up from 33.3% in 2Q’18.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, increased to €30.9 billion in the second quarter of 2019, an 8.8% increase from €28.4 billion in 1Q’19 but a 39.2% decrease from €50.9 billion in 2Q’18.

Primary high yield issuance totaled €29.0 billion in 2Q’19, a 69.5% increase from €17.1 billion in 1Q’19 and a 14.2% increase from €25.4 billion in 2Q’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