On Thursday, some 600 members attended the LSTA’s “The End of LIBOR: The Big Picture” webcast, a reference presentation intended help folks quickly come up to speed on i) Why LIBOR is ending, ii) what is the anticipated replacement rate (SOFR), what are its variants and how do they behave, iii) status and key steps for replacing LIBOR loans with SOFR loans and iv) key resources. Our next LIBOR webcast – “Demystifying the LSTA’s SOFR Concept Credit Agreement” – will take place on December 3rd.
In observance of Thanksgiving Day, the Loan Syndications and Trading Association (LSTA) recommends treating Thursday, November 28, 2019 as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.
While some headlines might suggest otherwise, we know that markets ebb and flow. After all, that’s what makes them markets. Today we are doing a short pre-holiday check in on how that ebbing-and-flowing loan market is doing.
ESG and sustainability are two buzzwords that crop up more and more in the financial markets – the loan market included. According to Bloomberg, $97 billion in green loans and sustainability linked loans have come to the global loan market in the first three quarters of 2019. Of that activity, more than $55 billion in volume represents sustainability linked loans.
According to CME, there have been over $300 billion of SOFR floating rate issuances through October 2019. While material, that’s kind of old news. The new news? That SOFR bilateral loans are beginning to appear publicly.
re you a JOB SEEKER? If so, you should check out the LSTA Loan Market Job board on our newly-designed website at https://www.lsta.org/loan-market-jobs/.
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.
There has been considerable discussion about the variants of SOFR on these pages (and at the LSTA Conference last week in the Introduction to LIBOR Cessation and SOFR Operationalization panels). Specifically we’ve discussed the pros and cons of SOFR Compounded in Advance and Forward Looking Term SOFR
SOFR tools are coming! On November 4th, the FRBNY released a request for public comment on an official “SOFR Compound Average” and a “SOFR Index”. Below, we describe these tools, their use cases and several questions from the consultation. The LSTA is considering responding.
In observance of Veterans Day, the Loan Syndications and Trading Association (LSTA) recommends treating Monday, November 11, 2019 as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.
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Membership in the LSTA offers numerous benefits and opportunities. Chief among them is the opportunity to participate in the decision making process that ultimately establishes loan market standards, develops market practices, and influences the market’s direction.