This week, we start off pondering the August secondary slump (but console ourselves with the YTD 6.5% return). We then turn to CLOs by: 1) analyzing their ownership and runnability and 2) defending them in the press. And what’s a week without LIBOR? We end with the latest (accounting) hurdle to LIBOR transition being knocked […]
The attached spreadsheet is for May 2019
The attached spreadsheet is for April 2019.
This week we cover Trading Records; Loans as Securities?; LIBOR Progress; Systemic Risk & AAL Good Things
This spreadsheet is for March 2019
This week we cover Japanese Risk Retention; Sustainable Lending Trending; Secondary Trading Stats
The attached spreadsheet is for February 2019
This week we cover Secondary Sagas; Syncing LIBOR in Loans & CLOs; Character & Trade Claims
This week we cover SOFR FRNs; Secondary Trends; Default Data & LSTA Life Hacks
As volatility dissipated in April (the VIX fell six points) and equities and HY bonds traded modestly higher, the loan market churned out its fifth consecutive month of positive returns. The S&P/LSTA Leveraged Loan Index (LLI) returned a three-month-best 0.41% in April, a level which only trailed high yield bonds’ 0.68% return. At a 1.8% return on the year, loans not only continued to lead the other major asset classes (from treasuries to equities), they remained the only investment that actually delivered a positive return through April. That said, market value (MV) returns in the loan market were negative for the third month running, albeit just barely at -0.02%. (In fact, MV returns have been positive just once since November). That should not be surprising given that two-thirds of the market has been trading above par in the secondary this year.
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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.