Investment Management

Senior Loan Talking Points

02/13/2017

Senior Loan Talking Points - Shifting Gears

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

Refinancing activity maintained its hold as the main driver of senior loan issuance over the course of a week that saw recent frenzied primary activity kick into a somewhat lower gear. The S&P/LSTA Leveraged Loan Index (the “Index”) gained 0.07%, and the average bid for loans dropped by a minimal two bps, to 98.12.

02/06/2017

Senior Loan Talking Points - Tug-of-War

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

The loan market remained very busy this week, and Tuesday’s month-end reading saw repricing volume exceed $100 billion. Against that backdrop, the S&P/LSTA Leveraged Loan Index (the “Index”) – not surprisingly - slipped -0.01%, while the average bid for loans declined by nine bps, to 98.14.

01/30/2017

Senior Loan Talking Points - Turning Up the Volume

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

The S&P/LSTA Leveraged Loan Index (the "Index") gained 0.07% on the week, while the average Index bid dropped slightly, to 98.23. New issuance volume was again the leading market storyline; at over $80 billion, the current month is now the highest on record, besting September 2016's previous high-water mark by $5 billion.

01/23/2017

Senior Loan Talking Points - A Changing Complexion

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

Refinancing and repricing activity have dominated the loan market so far in 2017, but that changed this week as a series of dividend recapitalizations totaling $6.3 billion took center stage. The S&P/LSTA Leveraged Loan Index (the "Index') returned 0.11%, while the average bid for loans decreased by one basis point, to 98.27.

01/13/2017

Senior Loan Talking Points - Forging Into The New Year

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

With the loan market shifting into high gear after the holidays, the issuer-friendly technical environment supported a number of repricings during a solid week for the asset class. The S&P Leveraged Loan Index (the "Index") returned 0.17%, and the average bid for loans rose by eight bps, to 98.28.

01/06/2017

Senior Loan Talking Points - 2016 Recap and 2017 Outlook

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

For the U.S. senior loan market, 2016’s strong total return story effectively started in March, when the price of oil rebounded and investor sentiment took a sharp upward turn from its late February lows.

12/17/2016

Senior Loan Talking Points - Rates Rise as Temperatures Drop

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

As expected, primary market activity remained robust before the expected seasonal lull, with issuers keen on taking advantage of strong investor demand, arguably emboldened by the expectation of a now more hawkish Federal Reserve.

12/12/2016

Senior Loan Talking Points - Finishing Strong

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

Those anticipating a slowing year-end tilt were pleasantly surprised as arrangers continued to debut a flurry of new deals, refinancings, and amendments before the 2016 books close. The S&P/Leveraged Loan Index (the “Index”) had a strong week, gaining 0.43%, while the average bid for loans increased by 35 bps, to 97.48.

12/05/2016

Senior Loan Talking Points - From Turkeys To Tinsel…With A Little Fed In Between

By Jeff Bakalar, Managing Director and Group Head of the Senior Loan Group

The S&P/LSTA Leveraged Loan Index (the “Index”) returned 0.22% this week, as the market sprung back to life after the U.S. Thanksgiving holiday lull. The average Index bid rose 13 bps on the week, to close at 97.13.

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