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European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
European Leveraged Loan/HY Bond Market Analysis - November 2010
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European Leveraged Loan/HY Bond Market Analysis - November 2010

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Leveraged Commentary & Data's complete overview of November's leveraged loan and high yield bond market: volume of deals, pricing, returns, default rates, trends, along with what to look for in the …

Leveraged Commentary & Data's complete overview of November's leveraged loan and high yield bond market: volume of deals, pricing, returns, default rates, trends, along with what to look for in the months ahead.


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  • 1. European Leveraged Loan Market Update November - 2010 Sucheet Gupte - Associate Director
  • 2. Copyright 2010 Standard & Poor's, a division of The McGraw-Hill Companies, Inc. No content (including ratings, credit-related analyses and data, model, software or other application or output therefrom) or any Text part thereof (Content) may be modified, reverse engineered, reproduced or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of S&P. The Content shall not be used for any unlawful or unauthorized purposes. S&P, its affiliates, and any third party providers, as well as their directors, officers, shareholders, employees or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness or availability of the Content. S&P Parties are not responsible for any errors or omissions, regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an "as is" basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs) in connection with any use of the Content even if advised of the possibility of such damages. Credit-related analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions. S&P’s opinions and analyses do not address the suitability of any security. S&P does not act as a fiduciary or an investment advisor. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain non-public information received in connection with each analytical process. S&P may receive compensation for its ratings and certain credit-related analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are pause made available on its Web sites, www.standardandpoors.com (free of charge), and www.ratingsdirect.com and www.globalcreditportal.com (subscription), and may be distributed through other means, including via S&P publications and third party redistributors. Additional information about our ratings fees is available at www.standardandpoors.com/usratingsfees.
  • 3. The Market in October • Activity picks up where it left of at end of 3Q • Volume: Loans + high-yield bonds = €67B, way more than all of 2009 • Loans return 1.42% during month, 6.57% YTD out • Market confidence growing; discounts narrow, secondary prices rise • Inflows into high-yield bond, loan mutual funds continue • Default rates ease further
  • 4. European Loan Flow Names - 2010 98 96.96 as of 19 November 96 Text 94 92 1/7/10 3/11/10 5/13/10 07/15/10 09/16/09 11/19/10 . Source: LCD - Leveraged Commentary & Data
  • 5. European HY Bond Flow Names - 2010 100 98.78 as of 15 November 98 96 Text 94 92 90 88 1/28/10 3/18/10 5/6/10 6/24/10 8/13/10 9/30/10 11/19/10 Source: Bloomberg .
  • 6. Advancers vs. decliners, per ELLI 10.0 Text 5.0 0 (5.0) Jan-09 Apr-09 Jul-09 Oct-09 Jan-10 Apr-10 Jul-10 Oct-10
  • 7. ELLI Multi-Currency Loan Index Return (monthly) 7.0% October: +1.42% YTD 2010: +6.57% 4.8% 2.5% 0.3% Text (2.0%) 3/09 7/31/09 11/09 3/10 7/10 10/31 . Source: LCD - Leveraged Commentary & Data
  • 8. New-issue Loans vs. HY Bonds, by Month 12 HY bonds Loans 9 €billions Text 6 €6.2B 3 €2.6B 0 7/09 9/09 11/09 1/10 3/10 5/10 7/10 9/10 10/10 Source: LCD - Leveraged Commentary & Data .
  • 9. ELLI Default Rates – European Leveraged Loans by principle amount by number of defaults 13% 16% 9% 12% 6% 8% 5.26% as of Text 7.69% as of 30 Sept. 2010 30 Sept. 2010 3% 4% 0% 0% 12/31/07 6/30/09 4/30/10 9/10 12/31/07 6/30/09 4/30/10 9/10 . Source: LCD - Leveraged Commentary & Data
  • 10. What’s in Store: 4Q Trends • Market tone continues healthy • New-issue calendar likely to build into 2011 • With eye on demand, arrangers look both to loan and high-yield markets out • Refinancings, secondary LBOs likely
  • 11. European Leveraged Loan Market Update November - 2010 Sucheet Gupte - Associate Director

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