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EMEA leveraged loan volume falls behind high-yield bond issuance

Publication Date: 21 May 2019 - By ReachX Team By ReachX T.

Equity Fundamental Convertibles Multi Asset UK EU Middle East Financial Services


High-yield bond issuance in EMEA [‘Europe Middle East and Africa’] region rose in April to overtake leveraged loan volumes, which declined ‘dramatically’, according to data compiled by a leading rating agency. 

In its monthly High Yield Interest report, Moody’s said bond issuance rose to $7.6bn in April, from $4.7bn in March, while leveraged loan issuance slumped to $1.2bn from $9bn.

"It's noteworthy that four of the bond issuers were UK companies and two, William Hill (LON:WMH) and Tesco (LON:TSCO), issued in sterling, taking advantage of the Brexit delay window," said Kristin Yeatman, Senior Analyst at Moody's. 

"Still, in most years, April is a strong month for bond issuance, when bonds significantly exceed loans."

There was one new bond issuer, Telepizza, and no new loan issuers in April. 

Moody’s also said it was also noticeable that ratings were more dispersed from Ba1 to B3 in bonds, unlike in previous months when issuance was concentrated in the Ba space. 

In April, five out of the 10 bond issuers had a single B rating. This risk appetite has continued into May with Altice issuing subordinated bonds with a rating of Caa1, the agency concluded.


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This contribution is for informational purpose and does not constitute investment advice nor is it an offer to sell or buy, nor is it a recommendation for any security.

ReachX T.


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