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 – finally surpassed this year – and still with two months to go.
October was a super month and November was excellent too as it offered up a little over €9bn making it the best November month since at least 2014.
MiFID II Countdown
ii) Monthly HY Corporate Bond Issuance
|∑ = 57.12||∑ = 48.55||∑ = 48.98||∑ = 75.02|
|Avg = 4.76||Avg = 4.05||Avg = 4.08||Avg = 6.25|
High yield supply for the opening ten months comes in at over €71bn making 2017 a record year for issuance in the high yield market. It has been an excellent period for the market as a whole, with spreads and yields at record tights/lows and therefore boosting the cost of funding for issuers to record low levels too. With the pipeline still fairly heavy, we must be looking at upwards of perhaps €75bn in total supply for the full year.
For fully searchable individual HY deal data, click here.