1、2026OUTLOOKEuropean Credit Markets2EUROPEAN CREDIT MARKETS OUTLOOK2026 European Credit Markets OutlookOur analysts outlook on the European credit markets in 2026PitchBook is a Morningstar company providing the most comprehensive,most accurate,and hard-to-find data for professionals doing business in

2、 the private markets.Credit Market AnalystsDavid Cox Managing Editor,Europe Francesca Ficai Managing Editor,Private Credit,Europe Nishant Sharma Reporter,Private Credit,Europe Michael Rae Senior Editor,CLOs,Europe Thomas Beeton Senior Reporter,High-Yield Bonds,Europe Jean-Marc Poilpr Senior Reporter

3、,Distressed Debt,Europe jean-Taron Wade Head of Credit Research,EMEA Published on December 16,20252026 outlooks 3Leveraged Loans:M&A holds key to success as market eyes new money 6Private Credit:Sector shift brings AI,defence in focus 9CLOs:Broadening investor base fuels issuance momentum12High-Yiel

4、d:Deep demand underpins strong market conditions14Distressed Credit:Defaults to decline,but workouts get tenser 3EUROPEAN CREDIT MARKETS OUTLOOKLeveraged Loan Outlook:M&A holds key to success as market eyes new moneyTechnical drivers led loan pricing tighter through 2025 despite record gross issuanc

5、e,as new-money supply continued to lag.Banks and investors say any shift toward more balanced conditions will depend largely on a continued recovery in what remains a challenging M&A market.Bank outlooks point to modest growth in 2026 loan volumes and a healthier mix of new money,but execution will

6、hinge on whether M&A and LBO activity finally reaccelerate.Fundamentals have softened with downgrades rising,triple-Cs expanding and valuation bifurcation deepening yet a benign macro backdrop and a 2028 maturity peak could create selective opportunities.Technical factors were dominant through 2025