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Video Analysis: Is the European Leveraged Loan Market Rebalancing?

In this month’s Capital Markets View video, LCD’s Taron Wade and S&P Global’s Chris Porter analyze the May European leveraged loan market, and look at where the asset class might be headed going forward.
european loan market video
Topics this month:

  • New-issue volume is up substantially on the year-ago period (though still driven by refinancings)
  • Purchase price multiples remain very high in Europe
  • Country diversity — the U.K., France, and Germany occupy their ‘traditional positions’ as the major issuers of debt
  • This spring’s supply glut was due to issuers wrapping deals ahead of the French election
  • Has a pricing floor been reached? (Flexes wider accounted for 50% of all institutional flexes in April)
  • Leverage is stable, around 5x on average
  • The institutional supply shortage has eased, with LCD’s measure moving into surplus in March and April on a rolling 6M basis.

The URL for the video: http://www.spratings.com/en_US/video/-/render/video-detail/capital-markets-view-may-2017
Taron Wade heads up LCD’s European Research efforts. Chris Porter is Head of Loan Recovery & CLO Business Development, S&P Global.

As ever, please feel free to contact Taron or Chris if you’d like a particular topic discussed in next month’s video.

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This story first appeared on www.lcdcomps.com, an offering of S&P Global Market Intelligence. LCD’s subscription site offers complete news, analysis and data covering the global leveraged loan and high yield bond markets. You can learn more about LCD here.

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