David Frey, a portfolio manager at Highbridge Capital, was elected as the new chairman of the Loan Syndications and Trading Association board of directors Thursday.
January got off to a slow start the last two years as well; only $2.5 billion priced in January 2014, as managers digested the final version of the Volcker Rule. And January 2014 racked up $5 billion before issuance really took off in the months following.
That was down from 2014s record setting $123.6 billion, but still marked the third highest year ever. Issuance slowed in the second half of the year to $38 billion from $60 billion in the first half.
The Securities and Exchange Commission (SEC) released two reports on Monday showing that nationally-recognized credit rating agencies have continued to improve their rating policies and procedures that were implemented post financial crisis.
The use of leveraged balance sheets, once rare in a sector that was built on the idea of linking everyday borrowers and savers, has today become routine for marketplace lenders. And some in the industry are issuing warnings about the risks being taken.
The Federal Reserve is looking for advice and insight into how it might improve its annual stress-testing regime, but banks and industry observers say the central bank is unlikely to touch the aspect of the tests that bothers them most: its secrecy.
The OCC's annual survey on annual underwriting standards took a swipe at leveraged loans among other lending categories. But in a year in which issuance down nearly 40%, the LSTA questions why the market gets red flags when a substantial majority of institutions report no change in standards.
It was the lowest monthly level since January 2015, according to Thomson Reuters LPC. Issuance for the first 11 months of the year was $91.4 billion
Asset diversity should help shield CLOs from instability in 2016, but pockets of defaults that have emerged in leveraged-loan sectors could come to impact some junior collateralized loan obligation notes next year, according to a report issued today from Fitch Ratings.
Issuance in the U.S. CLO market this year fell short in comparison to 2014 totals and the trend is expected to continue into 2016, Wells Fargo Securities senior analyst David Preston said in a recent report.