UJB - Leveraged finance deals hit record in 2021 as low rates boost M&A - Dealogic

With low interest rates, U.S. and European corporations didn't shy away from leverage in 2021. That helped fuel M&A activity in the past year. The leveraged finance market in those two regions jumped to a record $1.62T YTD, shattering the prepandemic 2019 figure of  $891B, according to a  Dealogic report dated Dec. 22. The number, which includes institutional loans and high-yield bonds in the U.S. and Europe, jumped 54% from $1.05T in 2020. The year's LevFin issuance topped the previous historic high of $1.52T in 2017. "Investor appetite remained strong throughout the year, on the back of record-high levels of CLO (collateralized loan obligations) issuance and HY (high-yield) inflow, enabling borrowers to refinance debt on more favorable terms, while underwriters cleared a heavy backlog of M&A transactions," the report said. In the U.S., institutional loans climbed to $853B across 1,181 deals YTD, vs. $443B on 685 transactions in 2020. High-yield bonds

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Leveraged finance deals hit record in 2021 as low rates boost M&A - Dealogic