KUALA LUMPUR, Feb 11 (Bernama) -- Bursa Malaysia ended higher today as buying on selected blue chips continued, said a brokerage. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 8.85 points or 0.51 per cent to 1,756.39 from Tuesday’s close of 1,747.54. The barometer index opened 3.69 points higher at 1,751.23 before moving as low as 1,745.51 in early trade to as high as 1,757.15 during the mid-afternoon session. Market breadth was positive with gainers leading losers 575 to 474, while 549 counters were unchanged, 1,087 untraded and 11 suspended. Turnover expanded to 2.55 billion units valued at RM3.06 billion from yesterday’s 2.19 billion units valued at RM2.35 billion.
Quick Summary
European leveraged loan issuance hit a record weekly high
Over €26.5 billion of loans priced in one week, the busiest in years
Refinancings and repricings dominated, not new borrowing
Investor demand remains strong, driven by CLO inflows and low risk premiums
What’s Driving the Surge
A wave of private equity–backed companies rushed into the market to refinance debt and lower interest costs, taking advantage of:
A temporary lull in geopolitical noise
Large pools of sidelined capital searching for yield
Risk premiums near multi-year lows
According to Bloomberg data, the week’s issuance represented about 5.3% of the entire European leveraged loan market.
Cost-Cutting in Action
Most deals focused on repricing existing loans:
Dechra trimmed 50 basis points from both euro and dollar loans
Ahlsell cut 75 basis points from its €2.6 billion debt pile
Borrowers are moving fast, aware that market windows can close quickly if volatility returns.
High-Yield Bonds Also Active
€7.2 billion of junk bonds issued — the largest weekly total since July
Still, private equity firms prefer leveraged loans due to:
Greater flexibility
Easier repayment terms
Strong demand from CLO investors
Why Investors Are So Willing
Record CLO issuance in 2025 created fresh buying power
Many CLO warehouses remain open, flush with cash
High-yield bond fund inflows are strong
iTraxx Xover, a key junk-debt risk gauge, is near four-year lows
“Politics kept January quiet, so this is catch-up issuance,” said Frits Lieuw-Kie-Song of Ironshield Capital Management LP.
Not Everyone Wins
Despite the boom:
Software-related borrowers face resistance, due to AI disruption fears
Team.Blue pulled a planned term loan amid investor caution
At the same time, CLO managers are feeling the squeeze:
Loan yields are falling faster than CLO funding costs
More managers are holding cash instead of chasing overpriced loans
Reports from Bank of America and Fitch Ratings show:
Rising cash balances in European CLOs
Greater selectivity in loan purchases
What’s Next
Many investors are waiting for new-money deals, with expectations that M&A activity will pick up. Potential mega buyouts could include:
Electronic Arts
Sealed Air
BASF Chemicals
Bottom Line
Europe’s leveraged loan market is red hot — for now.
Cheap money, abundant liquidity and calm markets have created a perfect window for borrowers to cut costs, but returns are tightening for investors, and selectivity is rising beneath the surface.
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