GO
Loading...

Enter multiple symbols separated by commas

M&A Fever Drives Record Loan Issuance

U.S. loan issuance soared to a record $1.67 trillion in 2006 as mergers and leveraged buyouts spurred new sales of loans and high-yield bonds, according to Reuters Loan Pricing Corp.

Loans for non-investment grade companies totalled $612 billion in 2006, exceeding the record $500 billion last year and more than doubling totals seen in 2000.

Companies also sold $137.1 billion of high-yield bonds this year, compared to $100 billion in 2005. J.P. Morgan led U.S. high-yield bond underwriting, followed by Citigroup and Credit Suisse, Reuters data showed. J.P. Morgan also was the lead underwriter for loans.

"The boom in M&A and specifically LBO activity has been well supported by the leveraged finance markets," said Meredith Coffey, director of analysis at Reuters LPC. "Both the U.S. high-yield bond market and leveraged loan markets have had a banner year."

Loans for investment-grade companies added $721.3 billion in issuance, and other loans made up another $339.1 billion, the data showed.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Mark Cuban and Donald Trump

    Donald Trump appears to have Mark Cuban's vote, at least in terms of how the billionaire real estate mogul is conducting his political campaign.

  • Ferrari 488 Spider

    Ferrari's new 488 Spider will have a V-8 turbo engine and a retractable hard-top roof that lowers in just 14 seconds.

  • Members of the New Horizons science team react to seeing the spacecraft's last and sharpest image of Pluto before closest approach later in the day at the Johns Hopkins University Applied Physics Laboratory (APL) in Laurel, Maryland July 14, 2015.More than nine years after its launch, a U.S. spacecraft sailed past Pluto on Tuesday, capping a 3 billion mile (4.88 billion km) journey to the solar system's farthest reaches, NASA said.

    The New Horizons Pluto flyby mission set records for NASA's social media and web metrics——but why do we care so much?

U.S. Video