AFME published high yield and leveraged loan report – Q1 2011
25 May 2011
The report contains European leveraged finance market trends for the first quarter of 2011, which includes issuance and credit performance figures for the high yield and leveraged loan markets.
Q1 2011 saw European leverage finance issuance total €38.9 billion, an increase of 79.4 percent and 24.8 percent from Q4 2010 (€21.6 billion) and Q1 2010 (€31.2 billion).
The continuation of the European sovereign debt crisis, which led to credit rating downgrades of five nations, also affected the credit performance of leveraged finance products. Generally in the first quarter, leveraged finance downgrades exceeded upgrades in both developed and emerging markets in Europe.
High yield issuance continued to fund over half the leverage finance market (54.1%), totalling €21.0 billion. Notably, second lien loans, which have not been part of leveraged loans deals since 2008, emerged in the first quarter.
© AFME
