OREANDA-NEWS. Fitch Ratings has launched the European Leveraged Finance Spotlight series with its inaugural summary of the declining trend among French borrowers to use Luxembourg-incorporated parent holding companies, or double luxco legal structures.

The French double luxco summary highlights how the European leveraged loan market has entered into a new phase underpinned by imbalances in loan supply and investor demand. The French double luxco emerged after the financial crisis to enhance creditor enforcement rights against pro-debtor French legal protections. This spotlight charts the decline in French double luxco usage in recent years just as recent court decisions in Luxembourg and France start to validate the legal structure.

Fitch's European Leveraged Finance Spotlight highlights specific trends in the leveraged loan and high yield bond markets and focuses on specific topics with analysis and what to watch in the near term.