Intermittent "financing feast" in the bond market, European leveraged loan issuance reached a new high this week.

This week, the volume of leveraged loans issued in Europe hit a historic high. Driven by a wave of support from private equity-backed companies, borrowers are taking advantage of investors' strong demand, resulting in lowered financing costs. According to compiled data, over 26.5 billion euros of term loans were issued this week, equivalent to approximately 5.3% of the total size of the European leveraged loan market. Borrowers are taking advantage of the lull in geopolitical noise to enter the debt market. They are well aware that there is still a significant amount of idle capital outside the market, which can be used to reduce some debt interest. This week, borrowers also offered investors over 7.2 billion euros in junk bonds, marking a weekly record high since July of last year. However, in a relatively benign interest rate environment, private equity firms often prefer loans because of their higher flexibility and simpler repayment terms.