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. So as we head into 2019, our view is that we will see just €45bn of deals in the high yield market. That’s back to the pre-ECB QE non-manipulated level. It won’t bring too many problems in a refinancing aspect, because the wall of funding has been pushed back a few years.
MiFID II is HERE
ii) Monthly HY Corporate Bond Issuance
|∑ = 57.12||∑ = 48.55||∑ = 48.98||∑ = 75.02||∑ = 61.99||∑ = 3.20|
|Avg = 4.76||Avg = 4.05||Avg = 4.08||Avg = 6.25||Avg = 5.17||Avg = 0.27|
In the high yield market, we had just 4 borrowers in the market in the month and two of those were blue chip national-like champions, albeit from the periphery (TIM and EDP). We had just €2.8bn issued in the month versus €5bn in the corresponding month last year.
Inevitably, we are not going to get close to last year’s total (€62bn) given that we think the slowing economy is going to make it a little more difficult for borrowers to access the markets amid periods of market volatility. Still, we ought to be looking at around €45bn for the full year which is closer to the long term average for this market.
For fully searchable individual HY deal data, click here.