High Yield Corporate Bond Issuance

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

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.


 

More Charts: Investment Grade Issuance | Senior Financials Issuance