How high yield and TLBs are converging

Author: | Published: 27 Mar 2018

Terms for high yield bonds and leveraged loans are converging, driven by growing similarity in investor bases, increased market size and liquidity, and more oversight

Over the last decade or so, Europe has witnessed an accelerating convergence between the traditional Loan Market Association (LMA)-style leveraged loan, the term loan B (TLB) and high yield bond markets. There are various factors contributing to this phenomenon which include, among others, increasing sponsor influence and a converging investor base, driven by changes in the macroeconomic environment and industry regulation....