After Greece's restructuring, the market regained its confidence and players were willing to again take risks. Inflows and volume were positive, while the secondary market finished the month down a bit. Check out LCD's new, free web site, LeveragedLoan.com http://www.leveragedloan.com * Leveraged finance job postings * Online Loan Market Primer * LCD News * Market Stats Connect with LCD 
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1. Text
European Leveraged Finance Market Update
April, 2012
Sucheet Gupte - Director

2. www.LeveragedLoan.com

3. Market Trends
Text
The market re-gained its confidence after Greece’s restructuring.
Inflows and volume were positive, with a slight drop-off in the
secondary market.
• The primary markets remained open for both loans and bonds.
• With the high yield markets open again, issuers executing bond
for loan takeouts.
• Default rates ticked higher; expected to rise further during the
year.

4. European Loan Flow Name Prices
100
99
97
Text
96
94
93
91
1/11 2/11 4/11 5/11 6/11 8/11 9/11 10/11 12/11 1/12 2/12 3/12
. Source: LCD - Leveraged Commentary & Data

5. European HY Bond Flow Name Prices
106
102
98
94
Text
89
85
81
1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12
. Source: Bloomberg

6. ELLI Multi-currency Loan Return (monthly)
3.0%
March 2012: + 0.99%
Text February 2012: + 0.73%
Q1 2012: + 4.36%
Q1 2011: + 4.23%
1.8%
0.5%
(0.8%)
(2.0%)
3/10 5/10 7/10 9/10 11/10 1/11 3/11 5/11 7/11 9/11 11/11 1/12 3/12
. Source: LCD - Leveraged Commentary & Data

7. New-issue: Loans vs. HY Bonds (monthly)
12
HY bonds
Text
Loans
9
€billions
6
€4.7B
3
€2.8B
0
3/11 4/11 5/11 6/11 7/11 8/11 9/11 10/11 11/11 12/11 1/12 2/12 3/12
. Source: LCD - Leveraged Commentary & Data

8. ELLI Default Rates – European Leveraged Loans
Default Rate by Principal Amount Default Rate by Issuer Count
13% 16%
13%
9%
10%
6%
Text
6%
3%
3%
0% 0%
2/09 3/10 4/11 3/12 2/09 2/10 2/11 3/12
. Source: LCD - Leveraged Commentary & Data

9. Looking Ahead
out
A-to-E activity will continue to dominate.
Inflows into European loan accounts are still miniscule with
high yield accounts getting most of the attention.
With the markets open again, banks are willing to underwrite,
however M&A activity is still muted.
In contrast to the US where default rates are at all time lows,
default rates in Europe are expected to move up.

10. Text
European Leveraged Finance Market Update
April, 2012
Sucheet Gupte - Director

11. Text
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