Leveraged Finance Market Insights for 1H24

This report provides an analysis of the leveraged finance (LevFin) market for the first half of 2024, highlighting significant trends in issuance across US and European institutional loan and high-yield bond markets. It notes that LevFin issuance more than tripled year-on-year, reaching USD 1 trillion, primarily driven by refinancing activities. The report discusses the impact of a stable macroeconomic outlook and interest rate expectations on investor behavior, leading to increased demand for high-yield funds and collateralized loan obligations (CLOs). However, it also points out that mergers and acquisitions (M&A) activity did not see a corresponding revival, with a notable gap in valuations affecting deal-making. The report details issuance figures, including record levels of institutional loans in the US and significant growth in European high-yield bonds. Additionally, it examines the competitive landscape between syndicated markets and private credit, as well as the tightening of loan spreads and margins in both regions.