The European leveraged finance market reached stalemate this summer, reversing the boom of the past three years. It has never been in such a state of paralysis and the situation is unlikely to change soon, warn specialist bankers and investors.

Credit rating agency Standard & Poor's said last week only 17 transactions worth €7bn ($9.7bn) have been successfully completed out of 49 leveraged loan financings totalling more than €70bn due to be finished this summer.