Western European high-yield bond issuance in 3Q26 sustained the momentum seen in 1H26, supported by a strong September M&A pipeline, although volumes remained constrained by macroeconomic headwinds as credit spreads widened.

The JPMorgan European Leveraged Finance conference in September suggested credit markets were in good health, noting that the European forward M&A pipeline stood at EUR 40bn, a five-year high. Goldman Sachs’ September EMEA credit conference also highlighted the resilience of the European market with the forward issuance pipeline booming.

However, credit indices came under pressure amid spiking government bond yields, higher oil prices and renewed inflationary fears, sparking concerns over a rise in interest rates. The iTraxx Crossover widened to 301bps-mid on 30 September from 245bps-mid on 30 June and 244bps-mid on 31 December 2025.

Refinancings dominated the use of proceeds in 9M26, accounting for EUR 53.9bn of West European issuance. The remaining volume was mainly attributable to EUR 19.7bn for general corporate purposes, EUR 15.1bn for M&A (excluding leveraged buyouts) and EUR 10.1bn for LBOs.

Sectors that had the largest issuance volumes in 9M26 included computers and electronics (EUR 14.4bn), telecommunications (EUR 23bn), healthcare (EUR 7.5bn) and oil & gas (EUR 6.9bn).

Issuance by country

The UK and France were the dominant European geographies in 9M26, with respective issuance of EUR 15bn and EUR 14.4bn, followed by Germany (EUR 13.2bn) and Italy (EUR 10.7bn).

Borrower-side league table

Latham & Watkins was the top legal counsel for issuers in 9M26 with EUR 14.74bn of league table value (1) across 31 deals and a 22.09% market share.

Paul Weiss Rifkind Wharton & Garrison was in second place with EUR 3.65bn across 12 deals and a 5.44% market share.

A&O Shearman came in third place with EUR 3.51bn of value across eight deals and a 5.25% market share.

Lead Bank league table 

Linklaters was the top lead bank legal counsel in 9M26 with EUR 8.95bn of value (1) across 18 deals and a 13.46% market share. A&O Shearman was in second place with EUR 8.871bn across 18 deals and an 11.46% market share for 9M26. Latham & Watkins was in third place with EUR 6.87bn of deal value across 22 deals and a 10.31% market share.