Data provided by Dealogic & Credit Market Daily
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
We might have had zero issuance in high yield in December and just €1.8bn in November, but we still managed €62bn for the full year in 2018. Coming home on the heels of that record supply in 2017 of €75bn, the year was a good one nevertheless. As we headed into 2019, our view was that we would see just €45bn of deals in the high yield market. However, we are already forced to revise that target level to €60bn (see below).
MiFID II is HERE
ii) Monthly HY Corporate Bond Issuance
|∑ = 57.12||∑ = 48.55||∑ = 48.98||∑ = 75.02||∑ = 62.19||∑ = 37.34|
|Avg = 4.76||Avg = 4.05||Avg = 4.08||Avg = 6.25||Avg = 5.18||Avg = 3.11|
The high yield primary market has flattered to deceive this year, but we have started to see greater traction through July after €6.34bn of issuance. We still are awaiting a much more aggressive follow-through in spread tightening even where we are in the IG market. That might spur more borrowers into the market where funding levels are nowhere near the costs of a couple of years ago.
For the year to date, we are up at a little over €36.4bn and although it is difficult to judge where we might end up for the full-year, we would think somewhere around the €60bn mark is still possible.
For fully searchable individual HY deal data, click here.