Loan Syndications and Trading News

November 18, 2016 - Secondary US loan trading volumes totaled north of $50 billion for the second consecutive month in October – a rare occurrence in today’s market.

November 17, 2016On Monday the New York State Court of Appeals heard oral arguments in a case in which the LSTA filed an amicus brief because a bad decision could have serious negative ramifications for the loan trading market.  At issue in Stonehill Capital Management v. Bank of the West are whether (i) a seller at auction can withdraw a loan after it has accepted a winning bid for that loan, and (ii) an oral loan trade is enforceable so long as it identifies the material terms of the trade even if it is subject to documentation.

November 10, 2016 - Even though most, if not all, market participants believe the glass will remain half-full for the remainder of the year, there are signs the secondary has become a bit over-bought at this stage of the rally.  First off, the recent bout of pre- and post-election volatility has triggered a 34 basis point decline in secondary prices since October.  And second, while last month’s advancer/decliner ratio still stood at a robust 2:1 (56% of loan prices advanced/28% declined), it represented the weakest ratio, by a sizeable margin, since June. 

November 9, 2016 - In observance of Veterans Day, the Loan Syndications and Trading Association (LSTA) recommends treating Friday, November 11, 2016 as a loan market holiday for purposes of calculating delayed compensation under the LSTA standard forms of trade confirmation.

November 8, 2016 - On November 3rd, roughly 1,000 market participants joined us at the LSTA’s 21st Annual Conference. For folks unable to attend, we offer some key takeaways below – and note that the slides are available on the LSTA website.

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