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CREDIT COMMENTARY
Jul 29, 2015
Markit European loan volume survey
The total trade volumes in the European loan market have pulled back slightly in the second quarter of 2015. Total volumes have dropped to €14.692bn, down 5.22% from the previous quarter. However, year on year volume is up 11.21% when compared to overall volume at €13.211bn for the second quarter of 2014. Highlights include:
- Leveraged loan volumes (Western Europe) constituted only 65% of the total volume in the second quarter, similar to the 67% composition of the previous quarter. In Q2 2014 leveraged trades made up 69% of total trade volumes tracked. 51% of total volumes was conducted on Loan Market Association (LMA) par documentation, with 15% on LMA distressed documentation
- European investment grade loan volumes represent 18.4% of the total, marginally down from last quarter's share of 21%
- Emerging market (Eastern Europe, Middle East and Africa) figures continued their upward trajectory in Q2, rising to 15.5% of the total volume from the previous quarter's mark of 12%
- A cyclical trend has formed, which shows volume dipping from Q1 to Q2 every year since 2012
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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.
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