CLO issuance may have come to a standstill in Europe this month, but not for want of collateral.
Issuance of European syndicated corporate leveraged loans stands at record $53.7 billion for the year to date, according to Dealogic.
That volume, which came via 82 deals, represents an increase of 69% from the $31.8 billion borrowed by below investment grade European companies iva 87 facilities during the same period of 2013.
European volume accounts for 13% of the $414.3 billion of global corporate leveraged loans so far this year, the highest YTD proportion since 2009, when it was 22%.
Volume is being driven by some very large deals, with 23 $1 billion-plus loan facilities signed so far in 2014, the highest YTD total on record. The average deal size of $655 million is up from $429 million in 2013 YTD and at the highest YTD level since 2009, when it averaged $722 million.
The UK accounts for the highest share of European syndicated corporate leveraged loan volume in 2014 YTD, with $9.0 billion borrowed by UK corporates so far this year. This is the first time UK borrowers have accounted for the highest YTD volume of European syndicated corporate leveraged loans since 2008 YTD, when they borrowed $6.4 billion.
BNP Paribas leads the European syndicated corporate leveraged loan bookrunner ranking in 2014 YTD, with an 8.8% market share. Credit Agricole CIB and Deutsche Bank follow with 7.9% and 6.9%, respectively.
Issuance of European collateralized loan obligations, which is also running at record levels, is expected to pick up again in September after coming to a half over the past couple of weeks. Some 15 managers are said to be working on deals.