A review of 2019 U.S. syndicated lending data reveals several interrelated macro trends. From the borrower side, there appeared to be less appetite to utilize the syndicated loan market. From an investor perspective, the year was marked by recovery, risk-off and the rebound dynamics. Below, we discuss the dynamics and dig into the data.
In the past year, one might have noticed a certain alarmist tone in the press’s coverage of leveraged lending. Commentators have pointed to potential overheating, overleveraging (or, at least, overgrowth) of the loan market. We’ll acknowledge that leverage is higher and documents are looser. But we’d also gently recommend that commentators consider i) a data-based analysis of 2019 versus 2018 and ii) an apples-to-apples comparison to bonds. The real story is – as it often is – a bit more nuanced.
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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.