LSTA’s Post

According to the LSTA’s Hugo Pereira, broadly syndicated loans traded sideways across July, with the average price of the Morningstar LSTA Leveraged Loan Index closing the month at 96.6, with no change observed in nearly half of the month's trading sessions. While July's total return of 0.68% was an improvement over the previous month, when a softer secondary sent loans to its lowest return this year, market value losses persisted for the second consecutive month and three of the past four months. Read more here: https://lnkd.in/eSEXdxb2 #loans #trading #markets

According to the LSTA’s Hugo Pereira, the robust demand for broadly syndicated loans moderated in June, sending the average price on the Morningstar LSTA Leveraged Loan Index 34 basis points lower and drawing the asset class to a return of 0.35%, the lowest since October of last year, and below the average monthly return of 0.72% so far this year. Read more here: https://lnkd.in/e5rg9csu #loans #credit #markets

A regulation that would have increased the levels of banks’ capital requirements and changed the way banks handle defaulted commercial real estate loans will not be going into effect – at least not as it is currently written. https://lnkd.in/dGhbfnj3 #CapitalFundingNW #TheFundingMachine #capital #funding #federalreserve #commercialrealestate #loans

Are broadly syndicated loans still attractive now the rate-hiking cycle may be nearing the end? See what Barings' experts are saying! #barings #bsl #broadlysyndicatedloans #loans ===== When rates rise, buy loans; when rates fall, buy bonds? It's not that simple. Learn more about the potentially compelling opportunity in broadly syndicated loans, and why the asset class may be positioned for strong performance in the year ahead. https://ow.ly/aMce30sB21t

Interest Rate Differential (IRD): Interest Rate Differential (IRD) refers to the difference in interest rates between two comparable interest-bearing instruments. This concept is crucial in various financial contexts, such as: 1. Foreign Exchange Markets: In forex trading, the IRD between two countries' interest rates can affect the exchange rate between their currencies. Higher interest rates in one country can attract foreign capital, leading to an appreciation of its currency relative to others with lower rates. Fixed-Income Investments: When comparing bonds or other fixed-income securities from different issuers or with different maturities, the IRD can indicate which investment might offer better returns, adjusted for risk. 2. Mortgage Refinancing: In the context of mortgages, the IRD is often used to calculate the penalty for breaking a fixed-rate mortgage contract early. The penalty is usually based on the difference between the original mortgage rate and the current rate that lenders could charge for a mortgage of similar term and amount. Understanding IRD helps investors, traders, and borrowers make informed decisions by considering the implications of differing interest rates on their investments or financial obligations.

It’s about to get wild with CURRENT commercial loans. Lol… Banks are letting CRE clients know they don’t have to follow their loan convenants. If I know this is happening, thousands of very serious people know already at minimum. Some lenders wanted to secretly delay the envitable, but the ability to not follow convenants wasn’t going to stay low key for long. It’s kind of a big deal! Knowing this, why would ANY person or organization not contact their banks and ASK if they can get out of their covenants? They will and I’m sure are! This likely will backfire because now major and even regional banks will have to justify why they’re letting some loans slide and others not. People with money talk like anyone else and they’re letting their friends know what their banks are doing. Banks don’t want the keys to real estate that’s not cash flowing due to interest rates. I think even BEFORE the election things are going to real hairy. The link attached is a reference for some CRE heavy banks. The CRE % of total loans and assets with a few are 😬 #banks #loans #cre #creloans #investment #trending #money #wallstreet #funding #news #trendingnews #banking #lending #economy #finance #commerciallending #commercialloans #commercialrealestate #thoughts #ideas https://lnkd.in/eScGpwNH

An evolving change affecting the expanding, highly leveraged corporate loan sector may impact how the economy responds to adverse shocks. Check out the latest from Dallas Fed Economics: https://lnkd.in/g78e9b_3

The rise in US junk loan defaults could indirectly influence the Middle East's borrowing costs, though the impact may vary depending on regional dynamics.

according to Globest, Banks Have Another Reason to Scale Back CRE Lending. They found that those banks with high exposure to CRE loans tended to have “relatively fewer liquid assets on their balance sheets, lower capital ratios (that is, more leverage), a larger share of their liabilities in the form of deposits, and a larger share of their assets in the form of loans." Read more here. #CRE #Banks #Loans

The crisis won’t just hit banks. Our estimates show that roughly a trillion dollars of commercial mortgage-backed securities (CMBS) loans will mature by 2025. With properties losing value, many borrowers could find themselves owing more than their property is currently worth, potentially leading to defaults. Are you prepared to discuss options to modify or extend your loan with your CMBS/CLO servicer? What are you waiting for? Call Brighton Capital Advisors today. #bca #servicing #cmbs #clo #loan #2025outlook #commercialrealestate