Earlier this month, the International Organization of Securities Commissions (“IOSCO”) published its Final Report on “Leveraged Loans and CLOs Good Practices for Consideration,” concluding several years of work conducted by its member working group. In response to IOSCO’s September 2023 Consultation Report), the LSTA and other industry commenters urged IOSCO to reconsider publishing this Final...
In this whitepaper, the LSTA reviews the official sector’s definitions of systemic risk, characteristics of systemic risk and transmission channels for systemic risk. We analyze leveraged loans and CLOs’ characteristics to demonstrate why they do not post a systemic risk to the U.S. financial system. ...
In this article, we discuss certain new terms and mechanics being seen in sponsored, private credit agreements reviewed by Reorg Covenants Prime and briefly review other terms that may at one time have been the exceptions to the rules but have slowly and steadily begun to turn into the rules themselves....
Broadly syndicated loans to non-investment grade U.S. Corporations are widely misunderstood outside of the loan industry. A number of commentators imply that leveraged loans are shadowy corporate equivalents to pre-crisis sub-prime mortgages. This is clearly not true and, to respond to such conflations, the LSTA recently published this white paper addressing these views....
American Family Insurance concluded in this report that leveraged loans do not pose a systemic risk at this time. The report, authored by analyst Steven Kelly and shared with the LSTA, is a response to press and regulatory inquiries into this question such as the Bank of International Settlements report released on Sunday....
Fact Sheet: Leveraged Loans in the U.S. FACT: There are approximately $1.7 trillion of leveraged loans outstanding in the United States. The institutional loan market –the portion of the leveraged loan market held by non-bank lenders like CLOs, insurance companies and mutual funds – accounts for approximately $1.2 trillion of that amount. FACT: The US...
This is a presentation that Elliot Ganz, our General Counsel and Chief of Staff, along with Michael Nechamkin of Otocagon, Jeff Bakalar of Voya and Howard Tiffen of First Trust did at the DC Finance Conference in Tel Aviv in mid June 2019...
1 Credit Cycles & Systemic Risks Measuring Risk in the Loan Market 3 Comparing 2007 and 2019 The 2007 and 2019 leveraged loan markets are very different Credit Trend: In the tenth year of a recovery, most markets, including loans, have grown State: Leverage has climbed, interest coverage is solid, covenants...
