European credit markets are shifting toward equilibrium. The clear divisions that once separated bank loans, private credit, and public bonds are fading as higher base rates and tighter bank regulation reshape how companies raise capital. Borrowers that previously relied on bilateral bank lines or private funds are re-engaging the bond markets, and investors are comparing opportunities across all credit types with a sharper focus on governance, transparency, and predictable cash flow.

Recent data from the Association for Financial Markets in Europe show that European high-yield bond issuance reached €28.8 billion in the first quarter of 2025, nearly triple the quarterly volume recorded in 2022, when the market was effectively frozen by rate volatility and inflation uncertainty. This rebound shows that, while overall issuance has moderated from the 2024 recovery peak, investors continue to allocate meaningfully to mid-market and crossover credits (bonds rated between investment grade and high-yield) that offer clarity of cash flow and covenant discipline.

Aalto Capital recently advised Eleving Group’s €275 million senior secured bond. The 2025–2030 notes were listed in Frankfurt and on Nasdaq Riga and drew demand primarily from institutional investors across Europe, the United States, and the Middle East.

For Aalto Capital, Eleving’s success demonstrates how Europe’s debt markets are becoming more connected and pragmatic. Issuers no longer face a binary choice between private debt and public bonds. The most effective mid-market borrowers are those structuring capital that satisfies both investor audiences, transparent enough for listing and disciplined enough for credit funds. As yields stabilise and investors prioritise fundamentals, this integrated approach is defining the next stage of European corporate finance.

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