November 2013, European Leveraged Loan Market Analysis
 

November 2013, European Leveraged Loan Market Analysis

on

  • 2,044 views

The European leveraged finance primary and secondary markets had a moderate October. Loan issuance was €2.3 billion in October 2013, while high yield issuance was €5.3 billion for the month. ...

The European leveraged finance primary and secondary markets had a moderate October. Loan issuance was €2.3 billion in October 2013, while high yield issuance was €5.3 billion for the month. Estimated inflows into European HY funds for October are estimated to be gigantic €1.32 billion, bringing the estimated year to date number to €4.87 billion. A slew of CLOs are expected to price before the end of the year.



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/1XD4wjvo9WE

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

Statistics

Views

Total Views
2,044
Views on SlideShare
571
Embed Views
1,473

Actions

Likes
0
Downloads
16
Comments
0

3 Embeds 1,473

http://www.leveragedloan.com 1471
http://translate.googleusercontent.com 1
http://www.google.com 1

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

November 2013, European Leveraged Loan Market Analysis November 2013, European Leveraged Loan Market Analysis Presentation Transcript

  • Text European Leveraged Finance Market Update November, 2013 Sucheet Gupte - Director
  • European Market Trends Text • The European leveraged finance primary and secondary markets had a moderate October. • Loan issuance was €2.3B in October 2013, while high yield issuance was €5.3B for the month. • Secondary markets were up: Leveraged loan markets were up 33 bps to close at 100.46; HY markets were up 156 bps to finish 105.19. • Estimated inflows into European HY funds for October are estimated to be a gigantic €1.32B, bringing the estimated year to date number to €4.87B. • The S&P European Leveraged Loan Index (ELLI) was up for October, with returns at 1.02%, slightly below the 1.35% seen in September. This brings the YTD return to 7.78%. • Just one CLO priced this month, Grosvenor Place 2013-1, a €361.55M vehicle from manager CQS. • Default rates were markedly lower.
  • European Loan Flow Name Prices 101 99 Text 98 96 94 93 91 3/11 . 5/11 7/11 Source: S&P Capital IQ/LCD 9/11 11/11 1/12 3/12 5/12 7/12 9/12 10/12 12/12 2/13 4/13 6/13 8/13 10/13 View slide
  • European HY Bond Flow Name Prices 106 102 Text 98 94 89 85 81 3/11 . 5/11 Source: Bloomberg 7/11 9/11 11/11 1/12 3/12 5/12 7/12 9/12 11/12 1/13 3/13 5/13 6/13 8/13 10/13 View slide
  • ELLI Multi-Currency Loan Return 1.5% October 2013: + 1.02% September 2013: + 1.35% Jan-Oct 2013: + 7.78% Jan-Oct 2012: + 7.84% Text 1.0% 0.6% 0.1% -0.4% 10/12 . 11/12 12/12 1/13 Source: S&P European Leveraged Loan Index 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13
  • Volume: New-Issue Loans vs. HY Bonds 18 Text HY bonds Loans €billions 14 9 €5.3B 5 €2.3B 0 10/12 . 11/12 12/12 Source: S&P Capital IQ/LCD 1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13
  • Volume: PIK Toggle Notes 4 PIK notes Text PIK Toggle Notes €billions 3 2 1 0 2006 . 2007 Source: S&P Capital IQ/LCD 2008 2009 2010 2011 2012 YTD 10/21/13
  • ELLI Default Rates – European Leveraged Loans Default Rate by Principal Amount Default Rate by Issuer Count 16% 16% 13% 13% 10% 10% Text 6% 6% 3% 0% 2/09 . 3% 0% 2/09 2/10 2/11 Source: S&P Capital IQ/LCD 12/11 10/13 2/10 12/11 2/12 10/13
  • Themes To Watch For Text • The forward calendar for new M&A transactions is still anemic; however, investors are flush with cash from a high level of repayments. With PE backed issuers expected to file for their IPOs, that number seems likely to rise. • A slew of CLOs are expected to price before the end of the year. However even with the pickup in new issue CLOs, there is still not enough to replace existing CLOs.
  • Text 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. pause