What you need to know about originating and trading loans may be found here. The basics of credit agreements, trading loans on standard LSTA agreements, and analysis of legal and regulatory trends are discussed.
Glossary of Syndicated Loan Market Terms
A PDF glossary of syndicated loan market terms brought to you by Practical Law and the Loan Syndications and Trading Association.
8 Things You Need to Know About Sustainable Finance
While the majority of sustainable finance activity has been on the equities side, the fixed income markets have also seen the development of green and sustainability linked products. On the loans side, the US loan market saw its first green loans and sustainability linked loans in 2018. Here are eight things you need to know about loans in the ever-changing world of sustainable finance.
The LSTA's Complete Credit Agreement Guide, Second Edition
Today’s syndicated loan market and underlying credit agreements are far more complex than ever. Since the global financial crisis, the art of corporate loan syndications, loan trading, and investing in this asset class have changed dramatically. Lenders are more diverse, borrowers more demanding, and regulations more stringent. Consequently, the credit agreement has evolved, incorporating many new provisions and a host of revisions to existing ones. You can purchase your own copy at Amazon (click on the book) or Barnes & Nobles or you can download on iTunes.
Sustainable Lending Glossary of Terms *New*
We have worked with the LMA and APLMA to provide this Sustainable Lending Glossary of Terms. We hope that adopting a coordinated approach on the Glossary will promote the development, and use, of a common language surrounding green and sustainable lending across the globe.
Green Loan Principles
The green loan market aims to facilitate and support environmentally sustainable economic activity. The Green Loan Principles (GLP) have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the syndicated loan market, with a view to promoting the development and integrity of the green loan product.
Distressed Trading Revisited
With the default rate rising to a ten-year high in recent months, the U.S. secondary loan market has seen a commensurate increase in distressed trading volume. Although today’s distressed trading volume is far lower than the peak of $45 billion experienced during the 2008–09 “Global Financial Crisis”, there nevertheless has been a very sharp increase.
ESG in the Loan Market - The Moment Has Arrived
The last eighteen months have seen ESG1 take hold in the loan market and, despite the COVID-19 crisis, ESG continues to be of increasing importance. This year there have been a number of exciting developments, from an industry response to calls for ESG information to further evolution in sustainable finance. Given the LSTA’s role in offering standardization to the loan market and our commitment to supporting market participants as they integrate ESG considerations into their processes and products, the LSTA has been at the forefront of many of these developments.
LSTA's 2020 KYC Initiative
For our members who are familiar with the LSTA’s KYC Guidelines, “Know Your Customer Considerations for Syndicated Lending and Loan Trading” (“KYC Guidelines”) we have news to share with you.
Sustainability Linked Loan Principles (SLLP)
Sustainability linked loans aim to facilitate and support environmentally and socially sustainable economic activity and growth. The Sustainability Linked Loan Principles (SLLP) have been developed by an experienced working party, consisting of representatives from leading financial institutions active in the global syndicated loan markets.
ESG The Loan Market *New*
What does “ESG” mean? As a broad umbrella term “ESG” refers to the environmental, social and governance factors which contribute to a company’s sustainability profile and overall performance. However, ESG can be adopted in a multitude of ways
Global Legal Insights: Blockchain & Cryptocurrency Regulation 2021
The LSTA’s Bridget Marsh and Josias Dewey of Holland & Knight LLP weighed in for Global Legal Group’s Global Legal Insights’ Blockchain & Cryptocurrency Regulation chapter, where they cover the loan market, blockchain, and smart contracts. This article provides a brief description of the loan market and its participants to put the conversation in context, sets out the basics of blockchain technology, reviews the concept of “smart contracts”, and examines how the primary and secondary loan markets can benefit from these new technologies. Click on this link to read the article online.
LIBOR - Hardwired for Success
In less than 18 months the world will no longer be able to depend on the benchmark tied to roughly $300 trillion of financial instruments—LIBOR. As described in the article titled “Getting to LIBOR Transition: The Big Picture,” market participants across derivatives and cash products are working through the ARRC1 to pave the way for a smoother(er) transition from USD LIBOR to its recommended successor rate, the Secured Overnight Financing Rate (SOFR).
Sustainability-Linked Loans: Financing the Green Transition
This practice note provides an overview of sustainability-linked loans (SLL). Sustainability-themed debt instruments represent one response of the financial community to the need to channel capital towards facilitating a carbon transition. A Lexis Practice Advisor Practice Note by Amara Gossin, Barclays and Robert Lewis, Sidley Austin.
The LSTA Form of Erroneous Payment Provision
Many articles have been written already about the important decision of Judge Furman of the SDNY in In re Citibank August 11, 2020 Wire Transfers (a.k.a. “Revlon”). That decision raised a number of issues for the loan market, and the LSTA assisted the market in addressing those issues by drafting a new erroneous payment provision (“EPP”) for credit agreements to limit the risk of a Revlon type situation—where an agent bank mistakenly pays lenders and cannot recoup those funds—happening again. In this article, LSTA’s Bridget Marsh reviews the LSTA draft form of EPP.
Tokens Representing Loans Are Not Securities *New*
This memorandum analyzes whether tokens or other similar digital assets (“Tokens”) representing interests in syndicated term loans as currently formed and traded would be considered “securities” for purposes of the definitions contained in the Securities Act of 1933 (“Securities Act”) and the Securities Exchange Act of 1934 (“Exchange Act,” and together with the Securities Act and the regulations issued under each Act, the “securities laws”).