Loan Trading News

So much for a quiet and uneventful beginning to the holiday season in the leveraged loan market. Across the first three weeks of December, an astonishing 210 basis points were shaved from the average bid of the S&P/LSTA Leveraged Loan Index (LLI).

On Thursday, December 18, 2014, the Federal Reserve published an order extending the conformance period for banks to comply with the ownership restrictions contained in the Volcker Rule until July 21, 2016 and noted that it would issue an additional extension until July 2017.

December 15, 2014, New York, NY – In observance of the Christmas Day and New Year’s Day holidays, the Loan Syndications and Trading Association (LSTA) recommends treating Thursday, December 25, 2014 and Thursday, January 1, 2015 as loan market holidays for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.

Some folks have asked whether loan mutual funds have access to sufficient liquidity. In fact, the LSTA and its members recently discussed this issue in detail.

As you may know, the American Bankruptcy Institute’s Commission to Study the Reform of Chapter 11 will be releasing its final report on Monday morning, December 8th.   The report will be available at 8AM Monday at www.commission.abi.org.

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