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 2018 – and in spectacular style.
MiFID II is HERE
ii) Monthly HY Corporate Bond Issuance
|∑ = 57.12||∑ = 48.55||∑ = 48.98||∑ = 75.02||∑ = 44.73|
|Avg = 4.76||Avg = 4.05||Avg = 4.08||Avg = 6.25||Avg = 3.73|
The high yield market has had an excellent year so far with €41.7bn of issuance – giving us the best opening six months in this market’s relatively small history. The pipeline her his considerable, too, and while spreads have gapped recently, deals have been getting away with still decent demand for new paper. We would think that €5bn plus for July – if the market remains open (that is, event risk permitting) is quite possible.
For fully searchable individual HY deal data, click here.