By Dealogic/Hedge Fund Insight staff
EMEA High Yield (HY) issuance volume has surpassed EMEA leveraged loan volume by $7.0bn in 2015 YTD. This has happened for only the second YTD period on record, the first time being in 1998, when HY new issuance volume ($4.2bn) surpassed leveraged loan volume ($3.0bn) by $1.2bn.
EMEA HY volume stands at $27.7bn via 42 deals in 2015 YTD, up slightly on $27.5bn issued in the same 2014 period, and the second highest YTD volume on record behind 2013 ($31.4bn via 68 deals). Consequently, average deal size has been pushed up to a record high of $658m in 2015 YTD, up 58% on the 2014 YTD average of $416m.
EMEA leveraged finance volume totals $48.4bn in 2015 YTD, down 31% on $69.6bn in 2014 YTD, and the lowest YTD volume since 2011 ($37.4bn). HY bonds have captured a 57% share of total volume in 2015 YTD, up 18 percentage points on the same 2014 period, and the second highest YTD share of the market on record behind 1998 (59%).
Average spread to benchmark on EMEA HY new issues has reached 481bps in 2015 YTD, up from 374bps in 2014 YTD. Average margin on EMEA leveraged loans stands at 415bps, up from 386bps in the same 2014 period, and the second highest YTD average on record behind 2013 (427bps).
Related article: The World’s Largest Credit Hedge Funds