Leveraged finance participants will be looking forward to the August slowdown, as the first seven months of 2017 have been breathless for supply, with both the high yield bond and leveraged loan markets already ahead of most full-year tallies. Moreover, this pick-up in supply is leading Europe to its highest global market share in years.
The €54.4 billion high-yield tally for the year to date has now surpassed last year’s full-year €53.4 billion volume, and is behind only the full-year volumes of 2013–15 (by this stage only 2014 had hosted more high-yield supply, at €60.2 billion). A record full-year volume is therefore a distinct possibility this year.
Likewise, the €70.4 billion of European loan volume recorded through the end of July this year has topped 2016 full-year levels, though it has not yet surpassed the full-year totals of every year since 2007, as the €78.7 billion notched up in 2014 is still to be beaten. But with a decent pipeline of supply building for September, few doubt that 2017 will be the strongest year of supply in a decade. — Luke Millar
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