Euro Leveraged Finance: Friends & Foes

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Season 9, Episode 18

This week on “Know More. Risk Better.” brings together host Logan Miller along with Luke Millar for a comprehensive analysis of the European leveraged finance landscape, examining 2025 market performance, primary market dynamics, and the outlook for 2026. The discussion covers record issuance volumes driven by refinancing, sector performance in chemicals and energy, and increased dividend recap transactions due to muted LBO activity.

Logan and Luke examine widening triple C spreads, recent market disruptions affecting sentiment, and the impact of high first-call premiums on refinancing. They also assess CLO demand via warehouse data, potential growth in M&A and sponsor activity, and Europe’s capacity for large LBOs post-EA deal. Additional topics include the 2026-2028 maturity wall, US firms issuing in euros for cheaper funding (reverse Yankees), and the rise of private credit as a significant capital source. This essential discussion provides strategic insights to navigate refinancing waves, re-leveraging trends, and capital structure optimization in today’s complex European credit markets.