Loan Trading News

November 19, 2014, New York, NY – In observance of the Thanksgiving Day holiday, the Loan Syndications and Trading Association (LSTA) recommends treating Thursday, November 27, 2014 as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.

At 1PM last Friday, the other shoe dropped. The Fed, OCC and FDIC released their long-awaited 2014 Shared National Credit Review, plus a bonus Leveraged Loan Supplement and Leveraged Lending FAQs. It did not make for an uplifting Friday afternoon.

If a mythical NFL quarterback had a completion rate of 85%, he would undoubtedly be unanimously inducted into the Hall of Fame on the first ballot.  In real life, according to NYU professor Edward Altman, 85% of companies that reorganize under Chapter 11 do not subsequently re-file for bankruptcy protection.

Today, the Federal Reserve, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation released their 2014 Shared National Credit Review, a Leveraged Lending Supplement and a Leveraged Lending FAQ.

During the first half of October, downward pressure intensified as the market continued to trade lower at a much quicker rate.  Over the first two weeks, the market’s average bid level fell another 100 basis points to 96.45 - a level not seen since December 2012.

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