July 27, 2020 - During second quarter, U.S. secondary loan trading volume fell 19% to $202 billion. But let’s put that decline in perspective. First, this was just the fourth $200 billion-plus quarter on record. Prior to March 2020 (when the market traded record $119 billion of loans), trading volume peaked in January 2019 at $76 billion. Between February 2019 and February 2020, monthly trading volumes averaged just $61 billion. In that context, second quarter volumes appeared strong. In June, trading volume increased 7% month-over-month, to $65 billion, but fell short of the $75 billion traded during April. Market breadth (the number of loans traded) improved in June by 8% as 1,485 loan facilities traded, the highest amount since February. On average, June saw 120 more loans trading than during each of the previous two months as traders casted a wider net across the secondary.
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