Leveraged loan volume fell in April from the substantially elevated level seen in March, driven by a decline in opportunistic repricing and refinancing activity. At the same time, demand pressure eased, which meant investors were selectively able to push back on deals at their tightest terms — resulting in a series of flexes.
However, market players believe liquidity is likely to stay strong in the coming months, even though nervousness around the French elections took froth out of recent opportunistic loan market activity.
Total leveraged loan volume was €6.4 billion for the month, down from €18.1 billion in March — which was the highest monthly volume seen since July 2007 as recaps and refinancings soared to €15.2 billion. However, buyout and other M&A-related financing stayed fairly steady at €3.4 billion for April, which is just above the €3.1 billion monthly average seen so far in 2017, and throughout 2016. – Taron Wade
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