Know More. Risk Better. Euro Leveraged Finance: Friends & Foes
13 snips
Nov 13, 2025 Luke Millar, a leveraged finance specialist and global editor at LFI, shares key insights on the European leveraged finance landscape. He discusses the impact of record refinancing volumes, sector performance like strong energy and resilient autos, and the rise of dividend recap transactions amid muted LBO activity. The conversation also covers widening CCC spreads, CLO demand dynamics, and the role of private credit as an alternative capital source. Luke provides a strategic outlook for the market, highlighting potential challenges and opportunities ahead.
AI Snips
Chapters
Transcript
Episode notes
Refinancing Drove Record Primary Activity
- 2025 primary was heavy on opportunistic refinancing and repricings rather than new-money M&A.
- Loan repricings and double-B refis dominated issuance while LBO bond activity stayed limited.
Dividend Recaps Replace LBOs
- Dividend recaps surged as sponsors extracted cash amid muted LBO volumes.
- Loan dividend deal volume doubled and high-yield recaps increased this year.
Divergent Sector Trends And Reverse Yankees
- Sector performance diverged: chemicals lagged while energy outperformed.
- Reverse Yankees and euro funding picked up, especially for dollar-funded issuers seeking cheaper euros.