By month end August; the average trade price had fallen 15 basis points to a 99 handle. (Readers should note that the average was buoyed by the $13.1 billion of new-money loans that began trading in the par/near par context on the break.)
Through the first half of September, LSTA/TRLPC Mark-to-Market (MTM) price action in the secondary loan market has behaved eerily similar to the first half of August – not so good.
As reported by the WSJ, Federal Reserve Board Governor Daniel Tarullo on Wednesday stated in a hearing before the Senate Banking Committee that while the regulators were "in the home stretch" on finalizing the risk retention rules, but added "I can’t say (that they will be finished) by the end of the year".
FATCA withholding tax does not apply to payments made with respect to a loan that was outstanding on July 1, 2014 unless such loan has been “significantly modified” thereafter. On Tuesday, August 26, 2014, the LSTA published a FATCA Advisory in which LSTA members are encouraged to include specific riders within future loan amendments to reflect whether or not the underlying loan qualifies or no longer qualifies as a “grandfathered obligation”.
August 21, 2014, New York, NY – In observance of the U.S. Labor Day holiday, the Loan Syndications and Trading Association (LSTA) recommends treating Monday, September 1, 2014 as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.