LSTA Data and Analysis: January Secondary Trading & Settlement Monthly

February 23, 2017 - January 2017 marked the second consecutive month where the median trade price was reported 25 basis points north of par.  It’s safe to say the secondary is trading at historically rich levels with 63% of activity coming in at a price above par and an additional 17% of trades being done in the 98-100 range.  And with a red-hot secondary (and record levels of refinancing activity) came a surge in liquidity.  Secondary US loan trading volumes totaled a 22-month high $57 billion in January – the busiest first month to a year on record.  Moreover, January volumes increased 28% month-over-month and 30% year-over-year.  And with the exception of a seasonally slow December, trading volumes have now run north of $51 billion per month since September – the longest such streak since mid-2014. 

Back to January, where market breadth expanded alongside higher volumes.   On average, 450 individual loans traded daily as compared to 2016’s monthly average of 400 loans.  Across the entirety of January, 1,424 individual loans traded – the first 1,400-plus figure reported in 18 months.  In total, 20% of loans traded 20 times or more (treating multi-allocations as one transaction) and accounted for more than 60% of total trade volume.  That said, the 100 most active names traded, on average, 42 times each in January and constituted 40% of total trade volume.  

LSTA Full and Associate Members can access the full Summary, including charts, here (located under Secondary Trading & Settlement Monthly).  For more information, please contact Ted Basta.

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