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||∑ = 62.19||∑ = 28.67|
|Avg = 4.76||Avg = 4.05||Avg = 4.08||Avg = 6.25||Avg = 5.18||Avg = 2.39|
The high yield primary market also felt the full ramifications of the weakness in markets through much of May. The last week of the month saw only one deal printed and that came from Norske Skog for just €125m. After almost €10bn was printed in April, we dropped back to just €5.29bn in May from 8 borrowers.
The year to date total moves inexorably on, to €25.6bn and would normally have had us on course for somewhere in the region of €50bn for the full-year (€62bn last year). The current unfavourable developments in macro might just see high yield issuance undershoot that €50bn target.
For fully searchable individual HY deal data, click here.