S&P Global Market Intelligence, European Loan Volume Survey: Q2 2024

Highlights

Total Volumes for Q2 2024 (€21,498m) were up by 10% from the €19,532m for Q1 2024. The quarter see a slight 1.26% increase on the €21,231m total in Q2 2023.

• Leveraged loan trades in Western Europe constituted 82.83% of total volume, down on the 86.72% observed in the previous quarter and lower than the 87.24% in Q2 2023. Of the 82.83% this quarter, 71.72% was conducted on LMA Par documentation and 11.11% on LMA Distressed documentation.
• European Investment Grade loan volumes represented 13.65% of the total, which is a significant increase on the 2024 first quarter of 8.9% and up on the Q2 2023 of 9.03%.
• Emerging Market figures (EEMEA) saw a decrease representing 3.53% for Q2. This is down on the 4.39% observed in Q1 2024, and down slightly on the 3.73% from the second quarter of 2023.

Survey results

Par figures remined stable in Q2, very slightly up by 0.04% to €15,418m from €15,412m in Q1 2024. This also represents a slight 0.48% decrease on the €15,493m in Q2 of 2023. There was a substantial increase in the Distressed sector moving up by 56.53% from €1,526m in Q1 2024 to €2,388m in Q2 2024. This was down by over 21% on the €3,028m observed in Q2 2023. Investment Grade figures were up by a significant 68.82% last quarter at €2,933m compared to the €1,780m in Q1 2024 and up by 53% on the €1,918m Q2 last year. Emerging Markets volumes see a decrease, down by 11.5% from €857m in Q1 2024 to €758m in Q2 and down 4.3% against the €792m from Q2 of 2023.

The average bid as of the end of Q2 was 94.82, which is up from the 93.43 observed at the end of Q1 2024 and significantly up from 91.37 in Q2 2023. The average bid over the quarter was 94.09, which was higher than the 93.43 of Q1 2024 and again higher than the 91.04 of Q2 2023.

Number of trades per market segment

Breakdown by participation

Total buy volumes in Q2 2024 were down by 4.6% from €22,187m in Q1 2024 to €21,166m last quarter. Sellside buy volumes were up by 2.9% from €14,584m in Q1 2024 to €15,002m in Q2 2024. Buyside buy purchases were down considerably by 18.9% in the same period, from €7,602m up to €6,165m. The number of actual buy trades increased by 8.34% from 5902 in Q1 2024 to 6394 in the last quarter.

For the sale volumes, the sellside were slightly up by 3.15% from €14,166m in Q1 2024 to €14,612m in Q2 2024. In the same period, buyside volumes were down 8.09% from €5,365 to €4,931. The total number of sales between Q1 2024 and Q2 2024 were slightly up by 0.06% from €19,532m to €19,543m. The total number of sell trades in Q2 2024 was 6786, up 9.5% from the previous quarter's 6198.

Contributors

A total of 20 buyside and sellside institutions participated in this survey.

For more information, please contact:

Georgie Slater

S&P Global Fixed Income Pricing

+44 20 3367 0317

Georgie.Slater@spglobal.com

S&P Global provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.