Back on February 25th, the secondary loan market finally caught a bid after LSTA/LPC Mark-to-Market (MTM) prices on the S&P/LSTA Leveraged Loan Index (LLI) had tumbled 200 basis points since year-end 2015. At that point, the LLI was in the red for 1.51% on the year. But during the next five weeks, through month-end March, loan prices rallied 225 basis points (alongside stronger equity, HY bond and commodity markets).
Turning our attention to liquidity, U.S. secondary trading volumes increased to $45.9 billion, up 5% from January’s 15-month low of $43.7 billion. As trade activity remained subdued (February volumes were 6% lower than the LTM average), the number of distinct loans traded remained below 1,250 for the fourth consecutive month at 1,222 loans – a 34-month low.
March 16, 2016, New York, NY – In observance of the Good Friday holiday in the United States, the Loan Syndications and Trading Association (LSTA) recommends treating Friday, March 25 as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.
On February 25th, the secondary loan market finally caught a bid after prices on the S&P/LSTA Leveraged Loan Index (LLI) tumbled 200 basis points since year-end. At one point in late February, the LLI was in the red for 1.51% on the year.
On Wednesday, March 2, 2016, HR 4166 (the QCLO bill), which was sponsored by Representative Andy Barr (KY) and Representative Dave Scott (GA), was passed by the House Financial Services Committee 42-15. Notably, 10 Democrats joined the bill.