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| 22 May, 2018

EMEA high yield bond issuance hikes in April – Moody’s

Year-on-year, EMEA high yield bond issues grew 72% in April from $10.1bln

Investors and speculators monitor stock prices on a screen at the FALCOM investment bank in Riyadh August 5, 2014.

Investors and speculators monitor stock prices on a screen at the FALCOM investment bank in Riyadh August 5, 2014.

REUTERS/Faisal Al Nasser

The number of high yield bond issues has surged in April in the Europe, Middle East, and Africa (EMEA) region, supporting past leveraged loan volumes, after "several banner months", Moody's Investors Services said in a market update.

The volume of high yield issuances jumped 87% and totalled $17.2 billion last month up from $9.2 billion in March, Moody's Investors Service stated late Monday.

Refinancing made up 80% of high yield bond issues in April, “as many issuers are looking to refinance ahead of widening yields,” Moody's associate managing director Peter Firth said.

Year-on-year, EMEA high yield bond issues grew 72% in April from $10.1 billion, the report showed.

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On the other hand, leveraged loan volumes fell 40% to $5.6 billion last month, after bond issuances stabilised at $9 billion in each of February and March. Moreover, EMEA leveraged loan volumes retreated 72% from the $20.3 billion registered in April last year.

Leveraged loan issuance is still dominated by acquisitions, which have accounted for 67% of April volumes, Firth added.

Source: Mubasher

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