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Loan Syndications and Trading News

November 6, 2018 - The Alternative Reference Rates Committee (ARRC) announced that it is extending the comment period for public feedback on its LIBOR fallback contract language consultations for floating rate notes and syndicated business loans until November 26, 2018 to provide sufficient time to allow for more thorough feedback. The LSTA, co-chair of the ARRC business loans as CLOs working group, has been deeply involved in the market consultation and has posted several materials to help market participants develop their responses to the consultation. Materials can be found here and the LSTA webcast on the syndicated loans consultation is available here.

November 1, 2018 - After hitting $183 billion in second quarter – the busiest three-month period on record – U.S. secondary loan trading volume fell 13% during the third quarter to $162 billion, according to the LSTA’s 3Q18 Trade Data Study.  Year-over-year though, third quarter volumes increased 17% as S&P/LSTA Leveraged Loan Index (LLI) Outstandings expanded by 16%.  But to be fair, third quarter 2017 turned out to be a weak comp; it was the slowest quarter in two years.  To that point, trading volumes totaled $509 billion across the first three quarters of 2018, an increase of more than 5% over the same period a year prior, but perhaps a bit lower than some might expect given the $138 billion rise in outstandings this year.

October 31, 2018 - The LSTA has published an audio podcast which addresses the concept of a "Shift Date" under LSTA trading documents.

October 30, 2018 - In September the Alternative Reference Rates Committee (the ARRC) released a consultation on LIBOR fallback language for syndicated loans. On October 4th, the LSTA hosted a webcast that detailed the consultation. We also are releasing a series of briefs that explain the fallback proposals and consultation questions to help market participants develop their responses (which are due by November 8th).

October 29, 2018 - On Tuesday, October 23rd, the LSTA Board adopted a primary delayed compensation protocol (the "Protocol") that represents an important step in furthering the LSTA's mission of promoting a fair, orderly, efficient and growing corporate loan market. The Protocol will go into effect on January 1, 2020 and will apply to all "primary" allocations i.e., allocations of new money in connection with new-issue syndications and amendments of existing deals.

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