The European leveraged finance market has enjoyed a buoyant first half of the year, led by “creative” refinancing deals, however law firms are pinning their hopes on a recovery in private equity M&A activity to deliver sustained growth.

In Europe, high-yield bond issuance rose 11% year-on-year to $84bn in the first six months of 2025 while the leveraged loan market increased 25% to $156bn, according to data from Debtwire.