Your SlideShare is downloading. ×
0

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

July 2013, European Leveraged Loan Market Analysis

340

Published on

The European leveraged finance primary and secondary markets were buffeted by volatility following comments by Fed chairman for tapering off support for quantative easing. CLO calendar is still …

The European leveraged finance primary and secondary markets were buffeted by volatility following comments by Fed chairman for tapering off support for quantative easing. CLO calendar is still strong, despite unease over EBA directives and politicians attitudes towards CLOs. Issuers are looking towards the US market for liquidity and best execution, be that either through bonds or loans.



Check out LCD's new, free web sites, LeveragedLoan.com and HighYieldBond.com

http://www.leveragedloan.com
http://www.highyieldbond.com/


* Job postings
* Online Loan Market and High Yield Primer
* News and analysis
* Market Stats


Video presentation of these slides:
http://youtu.be/lN4wRATnNHc

Connect with LCD
Facebook: http://www.lcdcomps.com/facebook
Like LCD on Facebook for monthly analysis on LBO/Private equity stats, as well as Default/Restructuring analysis.

LinkedIn: http://www.lcdcomps.com/linkedin
There are over 10,000 market contacts in LCD's Leveraged Loan Group

Twitter: http://www.twitter.com/lcdnews
News, commentary, other leveraged finance info

Web: http://www.lcdcomps.com

Contact: anna_cini@sandp.com

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
340
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
18
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. outText Text Sucheet Gupte - Director European Leveraged Finance Market Update July, 2013 open pause
  • 2. European Market Trends Text • Secondary markets were down: Leveraged loan markets were down 158 bps to finish the month at 98.83; HY markets were down 359 bps to finish the month at 99.65. • The European leveraged finance primary and secondary markets were buffeted by volatility in June, following Fed comments re: tapering support for quantitive easing. • Outflows of European HY funds was almost €1.5B for June, versus inflows of €3.8B until the end of May. Net inflows until the end of June are an estimated €1.3B. • For June 2013, leveraged loan issuance was €7.6B; HY issuance was just €2.9B. • Default rates were markedly lower. • The S&P European Leveraged Loan Index (ELLI) finished the month down 0.37%.
  • 3. 91 93 94 96 98 99 101 3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 10/12 12/12 2/13 6/13 . European Loan Flow Name Prices Text Source: LCD - Leveraged Commentary & Data 4/13
  • 4. . 81 85 89 94 98 102 106 3/11 5/11 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 6/13 European HY Bond Flow Name Prices Source: Bloomberg Text 5/13
  • 5. -0.4% 0.1% 0.6% 1.0% 1.5% 4/12 5/12 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13 . ELLI Multi-Currency Loan Return Text June 2013: - 0.37% May 2013: + 0.11% Jan-June 2013: + 2.85% Jan-June 2012: + 4.93% Source: S&P European Leveraged Loan Index
  • 6. . 0 5 9 14 18 6/12 7/12 8/12 9/12 10/12 11/12 12/12 1/13 2/13 3/13 4/13 5/13 6/13 Volume: New-Issue Loans vs. HY Bonds HY bonds Loans €billions Text Source: LCD - Leveraged Commentary & Data €2.9B €7.6B
  • 7. 0% 3% 6% 10% 13% 16% 2/09 2/10 12/11 2/12 6/13 0% 3% 6% 10% 13% 16% 2/09 2/10 2/11 12/11 6/13 . ELLI Default Rates – European Leveraged Loans Default Rate by Principal Amount Default Rate by Issuer Count Text Source: LCD - Leveraged Commentary & Data
  • 8. Themes To Watch For Text • Issuers are looking towards the US market for liquidity and best execution, be that either through loans or bonds. • Given the current volatility, the market will have to recalibrate itself to find new appropriate levels of risk. Pricing and yields will widen while documentation will veer towards investors rather than issuers. • CLO calendar is still strong, however there is still unease over EBA directives and politicians’ attitudes towards CLOs.
  • 9. pause Text Copyright 2013 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 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 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. Text

×