Data provided by Dealogic
The bar graphs below illustrate the trend in the growth and trends in corporate bond issuance in the euro-denominated bond market.
i) HY Corporate Bond Issuance Since 2003
The low rate/yield environment along with a low default rate since 2009 have given confidence to investors to push down the credit curve as corporate bond yields have declined in the investment grade market. The disintermediation trend has been witnessed in this market too, such that HY issuance has averaged almost Eur47bn per year since 2013, with 2014’s record year for issuance of €57bn – finally surpassed in 2017 – and in spectacular style.
MiFID II is HERE
ii) Monthly HY Corporate Bond Issuance
|∑ = 57.12||∑ = 48.55||∑ = 48.98||∑ = 75.02||∑ = 52.51|
|Avg = 4.76||Avg = 4.05||Avg = 4.08||Avg = 6.25||Avg = 4.38|
The high yield market has been quiet in August, given the good form it had been in during the first 7-months of the year. We fell short of the €1bn level with three borrowers piping up with €990m of issuance. August is usually a very quiet month though for this market while for the year to the end of August the market has delivered a stunning €48bn of issuance. There is a decent pipeline waiting to spill out deals and we are quite likely going to see a record level of issuance in high yield debt – again. Last year’s €75bn is clearly under threat. Again much will depend on whether event risk remains manageable, but also that equities can get to the end of the year without much of a drop.
For fully searchable individual HY deal data, click here.