This week we cover Senior Loan Officer Opinion(s), LSTA Year-in-Review, and Anti-trust Issues
In early October, we detailed what practitioners monitored in the third quarter leveraged loan market. This week, in its Senior Loan Officer Opinion (SLOO) Survey, the Fed published what loan officers noted on third quarter. While no one saw the same things, the SLOs flagged a metric that could portend a downturn. (Hint: Yield curve inversion.)
This week we cover CLO Future; Fiduciary Returns(?); SLOO Burn; FinCEN & Loans; and Credit Redux
It’s official. The Fed (and senior loan officers) have spoken: Supply and demand are not balanced. The Fed’s 1Q18 Senior Loan Officer Opinion (SLOO) Survey was published on May 8th and identifies supply/demand dynamics and their impact on loan terms and conditions. First, large and middle market borrowers simply have lower demand for loans. As TR-LPC charted, nearly one-fifth of the SLOO bank respondents said borrower demand for loans was “moderately weaker”; in fourth quarter 2017, more banks said that borrower demand had strengthened.
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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.