LSTA

According to the LSTA’s Theodore Basta, November secondary loan trading volume remained elevated at north of $72 billion. With one month remaining on the trading books, the market is in earshot of 2022’s annual trading record of $824 billion. Read more here: https://lnkd.in/eHk4MFFX #loans #trading #markets

Everywhere you turn, there is another bank-credit fund partnership announcement, but what do these partnerships look like? Dive behind the headlines with Tess Virmani’s takeaways from our Proskauer Rose LLP-led webcast. Read more here: https://lnkd.in/ekmxG28H #credit #funds #loans Stephen Boyko Jennifer Crystal

AUM of BDCs – significant holders of private corporate credit – jumped 35% YoY in 3Q24 to a record $407B. What impact does this growth have on the funds’ structure, financing, and asset quality? The LSTA’s Andrew Berlin explores the trends in the latest BDC Quarterly Wrap. Click here for more: https://lnkd.in/edJFk_er #credit #funds #markets

The National Association of Insurance Commissioners (NAIC)'s SSG late last week released preliminary probability weights for the 10 stress scenarios it has developed as part of its model-based approach to RBC charges for BSL CLO notes. The SSG is taking feedback and will publish estimated RBC charges monthly using the weights starting next year. The LSTA’s Andrew Berlin offers additional details here: https://lnkd.in/gH2VEZvh #CLOs #loans #markets

According to the LSTA’s Hugo Pereira, U.S. direct lending loans posted consistent and stable returns in the third quarter, according to benchmark indices that track the asset class. The Cliffwater Direct Lending Index returned 2.65%, while the Lincoln International U.S. Senior Debt Index (LSDI) returned 2.7% in 3Q, slightly lower than the LSDI’s 2.8% return in the previous quarter. Returns remained ahead of the 2% return posted by broadly syndicated loans (BSL), as measured by the Morningstar LSTA Leveraged Loan Index. Direct lending loan returns have outpaced BSL in every quarter this year, reflecting the illiquidity premium on direct loans. Read more here: https://lnkd.in/e-v-Dm_h #lending #loans #markets

FSOC’s Annual Report, published last Friday, provides commentary on private credit that is reminiscent of previous reports but less alarmist than its European peers. Still, we take note of new private credit financial stability considerations on FSOC’s radar outlined in the report. The LSTA’s Andrew Berlin takes a closer look here: https://lnkd.in/dqHMsJ9b #credit #reporting #markets

On December 5th, the LSTA hosted a webinar, "Geopolitics and the Loan Market: What’s in Store for 2025," presented by Geopolitical Strategist David J. E. Chmiel, who is Managing Director of Global Torchlight. In this seventh annual end-of-year address, Chmiel noted that if this year of national elections was one of confusion, conflict, and competition, then 2025 will be a year of divergence, drama, and “the Donald”. Read more here: https://lnkd.in/ej_v-H-u #Geopolitics #loans #markets

Registration is still open for the virtual 2025 Leveraged Finance Credit Outlook event! On December 11th, the LSTA's Tess Virmani, along with a panel of experts, will present "Private Corporate Credit: What to Expect in 2025." LSTA members can register for the virtual event here: https://lnkd.in/evt8cjix #loans #credit #markets Fitch Ratings

On December 4th, LSTA hosted a webinar, the Semi-Annual Oil & Gas 2024 Update, presented by the Haynes and Boone, LLP team led by Jeffrey Nichols who was joined by Phillip Lookadoo, Kim Mai, Laura Martone, and Roy Schwartz. The team addressed asset-backed securitizations in the oil and gas industry and municipal prepaid bond transactions. After giving helpful background to each, they dove into the benefits offered by them, the structures, the key players, and gave tips on negotiating and documenting the deals. Read more here: https://lnkd.in/eiJ3bdzm #oilandgas #bonds #markets

According to the LSTA’s Hugo Pereira, the secondary loan market rallied across November, driven by post-election optimism that boosted investor demand for broadly syndicated loans (BSL) and other risk assets. The average price for BSL in the secondary market advanced in 12 of 19 trading sessions in the month, ending 35 basis points higher at 97.25, the highest level since May 2022. The positive sentiment drove returns on BSL to 0.83% in November, according to the Morningstar LSTA Leveraged Loan Index. Read more here: https://lnkd.in/eGm8W-wG #loans #trading #markets