Investment Management

Senior Loan Talking Points

03/20/2017

Senior Loan Talking Points - Riding the Rate Wave

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

It was an eventful week for the U.S. loan market, with winter storm Stella battering the Eastern United States and slowing down primary activity, followed by a pick-up in launches and the Federal Reserve decision to raise short-term interest rates.

03/13/2017

Senior Loan Talking Points - Back on Fed Watch

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

Loan issuance picked up over the course of a week that experienced several bond-for-loan takeout transactions as issuers looked to lock-in lower rates amid indicators of a healthy economy, and increasing probabilities of Fed rate hikes. The S&P/LSTA Leveraged Loan Index (the “Index”) gained 0.08%, and the average bid for loans increased by 13 bps, to 98.59.

03/06/2017

Senior Loan Talking Points - Solid Gains

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

Bank loans in the S&P/LSTA Leveraged Loan Index (the “Index”) returned 0.26% in a week that delivered a boost in the forward pipeline and an uptick in refinancing activity. The average bid for loans was 98.46, which marked an 18 bps bump.

02/27/2017

Senior Loan Talking Points - A Bit More Even-Keeled

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

A handful of welcomed new M&A-driven transactions came to market this week, tempering, to some degree, repricing activity. In turn, the average bid for loans saw an increase of nine bps, to 98.28, and the S&P/LSTA Leveraged Loan Index (the “Index”) returned 0.18% on the week.

02/17/2017

Senior Loan Talking Points - Trading Places

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

After a weeks-long period of refinancing dominance, merger and acquisition financing took center stage this week as the forward calendar shrank significantly. The average bid for loans saw a slight decline of seven bps, to 98.18, while the S&P/LSTA Leveraged Loan Index (the “Index”) returned a solid 0.14% on the week.

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.

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