April 18, 2019 - Recently, questions have been raised about the liquidity of loan investments and whether loan mutual funds are an appropriate investment vehicle for loans. In fact, that question was answered late last year. In fourth quarter 2018, loan mutual funds and ETFs underwent a “natural experiment” as loan prices declined five points and funds experienced nearly $20 billion of redemptions in short order. Loan mutual funds successfully navigated that turbulent market, selling assets and managing their liquidity and redemption needs. Importantly, last year’s experience reaffirmed the efficacy of funds’ Liquidity Risk Management plans and their “Highly Liquid Investment Minimums”, or the amount of highly liquid investments they must keep on hand. Both of these safeguards have been developed in conjunction with the SEC’s 2016 Liquidity Risk Management Rule.

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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.

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Don’t Think You Are an ESG Fund?

On August 9th the LSTA hosted George B. Raine, partner at Ropes & Gray, for a webcast titled “Don’t Think You Are an ESG Fund?…

LIBOR: The Other Term SOFR

August 10, 2022 - The good news on LIBOR transition is that corporate loan market has largely stopped originating new loans on LIBOR and nearly…

Hot Topics in LIBOR: Remediation Survey

With less than 15% of outstanding US leveraged loans on SOFR, LIBOR remediation is moving more slowly than most folks would like. The LSTA’s Meredith…