TLDR:

• Q1 2024 represented a strong start to the year, with €44.9bn of euro TLBs issued, 7% higher than Q1 2021
• Repricings were the main attraction: €19bn printed, accounting for 41% of issuance in Q1, with potentially more to come
• Margin compression fuelled the repricing wave, with the average single-B margin marking a decrease from 465bps over Euribor in 2023 to 418bps in Q1 24
• The broadly syndicated market fought back against the private credit boom as issuers sought cheaper pricing, but there’s less certainty to what extent it will last
• The post-pandemic boom encouraged consumer discretionary credits to return to market, with the industry printing just below €10bn
• Altice’s stand-off with creditors was a sour note to end the quarter after a strong start, but contagion is so far contained
• LBOs continue to lag, but change — and a fuller M&A pipeline — is expected

In this tighter market environment, European leveraged loan borrowers wasted no time making their presence felt, with one of the busiest first quarters in recent history.