European leveraged finance issuance (leveraged loans and high yield bonds) increased to €66.4 billion in 3Q’19, a 1.7% increase from €65.3 billion in 2Q’19 and a 19.5% increase from €55.5 billion in 3Q’18. This quarterly increase was driven mainly by an increase in high yield bonds issuance in developed market Europe. The high yield bond share of leveraged finance market issuance increased to 45.7% in 3Q’19, up from 44.8% in 2Q’19 and up from 31.9% in 3Q’18.

Leveraged loan issuance, including first lien, second lien, and mezzanine financing, totaled €36.0 billion on 52 deals in the third quarter of 2019, unchanged in volume from €36.0 billion on 69 deals in 2Q’19, but a 4.7% decrease from €37.8 billion on 66 deals in 3Q’18.

Primary high yield issuance totaled €30.3 billion on 53 deals in 3Q’19, a 3.8% increase from €29.2 billion on 71 deals in 2Q’19 and a 71.2% increase from €17.7 billion on 46 deals in 3Q’18. In developed market Europe, €27.3 billion of high yield bonds were issued in 3Q’19, up 4.4% from €26.2 billion in 2Q’19 and up 56.9% from €17.4 billion in 3Q’18. In emerging market Europe €3.0 billion in high yield bonds were issued in 3Q’19, down 1.9% from €3.1 billion in 2Q’18 but up tenfold from €0.3 billion in 3Q’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

• Director of Research: Katie Kolchin, CFA
• Assistant Vice President: Justyna Podziemska
• Senior Associate: Ali Mostafa