Investment Management

Senior Loan Talking Points

06/19/2017

Senior Loan Talking Points - No Surprise, Fed Lifts; Loans Hold Steady

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

The Fed followed through on its recent guidance and raised short-term rates this week. Since the action was widely expected, the S&P/LSTA Leveraged Loan Index (the “Index”) remained relatively flat with a -0.02% total return, as the average bid retreated 10 basis points to end the week at 98.20.

06/09/2017

Senior Loan Talking Points - Clipping Along

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

Despite strong market demand, an increase in primary market activity kept Index returns in check. The S&P/LSTA Leveraged Loan Index (the “Index”) was flat for the week with a gain of 0.03%, based solely on interest carry, as the average bid slipped 3 basis points to end the week at 98.30.

06/05/2017

Senior Loan Talking Points - Staying Active

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

M&A and opportunistic transactions continued to dominate the new issue calendar as the loan market stayed active over the holiday-shortened week. The S&P/LSTA Leveraged Loan Index (the “Index”) gained 0.07%, although the average bid slipped a basis point to end the week at 98.33.

05/30/2017

Senior Loan Talking Points - Stepping Into Summer

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

As the loan market eases into the U.S. Memorial Holiday weekend, the asset class this past week continued to benefit from solid demand against what looks to be a typically less active summer forward calendar. The S&P/LSTA Leveraged Loan Index (the “Index”) returned 0.09%, while the average bid increased two bps, to 98.35.

05/22/2017

Senior Loan Talking Points - Searching For A Better Balance

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

Retail funds and CLOs added further inflows of cash into the loan market this week, as the new issue calendar continues to moderate. S&P/LSTA Leveraged Loan Index (the "Index") gained 0.07%, while the average bid for loans declined by a basis point, to 98.32.

05/15/2017

Senior Loan Talking Points - A Good Week

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

Merger and acquisition announcements took center stage in a loan market that had a good week but nonetheless remains eager for new paper. The S&P/LSTA Leveraged Loan Index (the “Index”) returned a solid 0.10%, and the average bid for loans increased by two bps, to 98.33.

05/08/2017

Senior Loan Talking Points - Slow on News, Steady on Return

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

In a week light on headline-grabbing news, the loan market held steady, despite further moderation of the issuer-friendly technicals that have dominated most of 2017. The S&P/LSTA Leveraged Loan Index (the “Index”) gained 0.09%, while the average bid remained unmoved at 98.31.

05/01/2017

Senior Loan Talking Points - Steady As She Goes

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

While stock markets surged this week following welcome news from the first round of French elections, things remained relatively even-keeled in the loan market. The S&P/LSTA Leveraged Loan Index (the “Index”) returned 0.09%, while the average bid for loans increased only one basis point, to 98.31.

04/24/2017

Senior Loan Talking Points - New Deal Green Shoots?

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

The loan market exhibited low correlation to volatile equity markets during a week when leveraged buyout activity took center stage for the asset class. The S&P/LSTA Leveraged Loan Index (the “Index”) returned 0.08%, while the average bid for loans inched up two bps, to 98.30.

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