European leveraged finance issuance (leveraged loans and high yield bonds) decreased in 3Q’17 to €47.6 billion, a 41.3% decrease from €81.2 billion in 2Q’17 and a 20.7% decrease from €60.0 billion issued in 3Q’16. The quarterly decrease in 3Q’17 was almost equally driven by a 44.5% decrease in high yield bond issuance and a 39.0% decrease in leveraged loan issuance. The high yield bond share of the leveraged finance market decreased to 40.0% in 3Q’17, down from 42.3% in 2Q’17 but slightly up from 39.9% in 3Q’16.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, decreased to €28.6 billion in the third quarter of 2017, down 39.0% q-o-q (€46.8 billion in 2Q’17) and down 20.9% y-o-y (€36.1 billion in 3Q’16).

Primary high yield issuance in 3Q’17 totaled €19.1 billion on 48 deals, a 44.5% decrease from 2Q’17 (€34.4 billion on 83 deals) and a 20.4% decrease from 3Q’16 (€23.9 billion on 44 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
• Associate Director, Research: Julio Suarez

SIFMA Research

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