Isabell Witt is an EMEA loan correspondent, focusing on coverage of the leveraged loan market in Europe. She joined IFR’s London office in February 2011 and has over six years experience in covering financial markets.
European leveraged loans were broadly flat to slightly lower last week as the indecisive Italian elections dented sentiment in the wider markets, while loan investors are finding it difficult to find assets to buy. Europe’s top 40 leveraged loans were quoted 7bp lower on Thursday at 98.53% of face value from 98.6% a week earlier.
Relative value on European leveraged loans is becoming increasingly attractive after a slump in US yields since the start of the year. The first European CLO for Cairn Capital shows US investors allocating more money to European fund managers and large recent transatlantic leveraged loans show higher yields available on non-dollar paper.
Investors have put the brakes on European leveraged loan repricings before they had a chance to set an aggressive precedent, by forcing Iceland Foods and Global Blue to increase proposed margins.