Loan Syndications and Trading News

According to the LSTA’s second quarter 2015 Secondary Trading Study, 2Q15 secondary trading volumes were down 3.5% to $153 billion.  But if annualized, 2015 trading activity would total $621 billion- basically tracking last year’s record pace of $628 billion which was 21% higher thanthe market’s previous high water mark established back in 2007.

So here we are, six months into 2015 and S&P/LSTA Leveraged Loan Index (LLI) returns have bested all other major asset classes.  At 2.83%, first half loan returns came in slightly ahead of the HY bond market (2.5%), more than double that of the S&P 500 (1.24%) and markedly higher than the negative returns produced by the interest rate sensitive 10-year Treasury (-0.51%) and HG bond (-0.46%) markets.

June 25, 2015, New York, NY – In observance of Independence Day, the Loan Syndications and Trading Association (LSTA) recommends treating Friday, July 3 as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.

Across the first five months of the year, U.S. trading volumes have totaled $254 billion, just 1% below the same time last year.  During May, secondary loan trading volumes decreased 15% month-over-month to a five-month low of $45.2 billion.

On June 17th, the LSTA submitted its second comment letter on the OECD's Base Erosion and Profit Shifting Project proposals, namely Action 6: Preventing Treaty Abuse.  In the May 22nd revised discussion draft, the LSTA was disappointed to see that the Working Party continued to not accommodate non-collective investment vehicles, like CLOs and other debt funds.

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