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
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 2017 – and in spectacular style.
MiFID II is HERE
ii) Monthly HY Corporate Bond Issuance
|∑ = 57.12||∑ = 48.55||∑ = 48.98||∑ = 75.02||∑ = 61.99|
|Avg = 4.76||Avg = 4.05||Avg = 4.08||Avg = 6.25||Avg = 5.17|
The high yield market has flattered to deceive too, in November. We were on a great run through to end of September, but this final quarter of the year has really disappointed. It’s obvious why though. Equities. That volatility has run right through to the high yield market and stopped it dead in its tracks. We were on course for a record year – again, but now, we will just have to settle for 2018 being the second best on record.
November threw up just €1.82bn of deals from 4 borrowers, with the 2-month supply (Oct/Nov) coming in at just €6.1bn. For the 11-months, its €62bn and we are probably looking at around €63.5bn – €65bn for the full year. That compares fairly well with the record €75bn in 2017.
For fully searchable individual HY deal data, click here.