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 being a record year for issuance – breaking through the €50bn barrier.
The sustainability of this trend was tested in 2016 and we fell a little short. The market has started well in 2017 and the overall supply number is already close to the €50bn mark – and heading for a record amount for any given year.
MiFID II Countdown
ii) Monthly HY Corporate Bond Issuance
High yield supply for the opening nine months comes in at €48bn and we are just €9bn short of 2017 being a record year. We believe we will get to that record amount. After all, we have had several €5bn+ months and we know that the pipeline is rammed. So there is little reason why October and November can’t be kind to the high yield markets from an issuance perspective, but that assumes we avoid any prolonged period of the window slamming shut on event-risk grounds.
For fully searchable individual HY deal data, click here.