Europeans relying on US in 2012 loan, high yield bond market, big uptick in Yankee buying

Yankee loan and bond activity is on the move again as the second-quarter of the year comes to a close. On the loan side, BSN MedicalKloeckner Pentaplast, and Fresenius are all tapping the U.S. and European markets, while STS, a division of Stork, is pre-marketing on both sides of the Atlantic for an upcoming high-yield issue.

During the first half of the year, a total of €13.41 billion of loans from Europe-based borrowers was placed into the U.S. leveraged loan market. This yankee loan total is double the €6.72 billion issued into the U.S. during the whole of 2011, and well ahead of the 2010 total of €7.86 billion (the 2012 total excludes the cancelledFormula One refinancing that launched in May, but was cancelled in June – including that deal, the volume would have been €14.8 billion).

In the year to date, 47% of all loans issued by European borrowers came from the U.S. By comparison, in the two previous full years yankee issuance made up roughly 15% of total issuance – demonstrating the sudden increase in Europe’s reliance on U.S. buyers to get deals done.  – Ruth McGavin

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