Leveraged Finance Market Highlights for FY24

This report provides an overview of the leveraged finance (LevFin) market's performance in FY24, detailing record-breaking gross issuance across US and European institutional loan and high-yield bond markets, which reached USD 1.86 trillion year-to-date. The surge in issuance was primarily driven by refinancing and repricing activities, although new money supply showed a modest increase due to dividend recapitalization and a shift of borrowers from private credit to syndicated markets. The report outlines the strong performance of LevFin markets, with total returns exceeding 8% year-to-date. It also discusses the impact of geopolitical events, such as the US presidential election, on market dynamics. Additionally, the report covers the decline in borrowing costs due to interest rate cuts and the tightening of spreads, as well as the significant growth in CLO issuance, which reached new records in both the US and Europe. The report concludes with insights into sector performance, highlighting technology and healthcare as leading sectors in LevFin activity.