For the second time in three months, loan returns were negative in the loan market. After returning 0.47% in September, the S&P/LSTA Leveraged Loan Index (LLI) produced a 0.43% loss in October –the worst monthly print this year.
The attached spreadsheet is for October 2019
This presentation is the for Third Quarter 2019 LSTA Secondary Trading & Settlement Study.
After recording a record high during the first quarter of this year ($212 billion), secondary loan trading volumes have steadily declined. Following second quarter’s 10% drop, third quarter activity fell an additional 14% to $165 billion. Third quarter’s tally was just 2% higher year-over-year.
After returning more than 4% during the two-month rally that began the year, the S&P/LSTA Leveraged Loan Index (LLI) has failed to sustain any meaningful momentum. Since March, monthly returns have flipped from positive to negative while market value returns were positive just twice – the last time being July.
The attached spreadsheet is for September 2019
Secondary loan trading volume fell 16% in August to a 14-month low of $51.4 billion. To put that figure in perspective, the last time volumes were below $60 billion was last September. But it wasn’t just the normal end of summer slowdown.
Last month we highlighted that secondary loan prices finally caught a bid in July, following two consecutive months in the red. Well, the rally proved to be short lived as the secondary loan market generated its worst reading of the year in August.
Secondary loan trading volume totaled just north of $61 billion in July – a 10-month low. July marked the third consecutive month where volumes have stagnated; not rising above $61.3 billion per month. During the three months prior (February through April) the market averaged over $68 billion of trading. Of course, volumes usually taper off […]
The attached spreadsheet is for August 2019
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