LSTA

The LSTA's Elizabeth Yazgi is delighted to share inaugural drafting guidance and model language for green loans and the agents that structure these facilities. These are invaluable resources for the broad spectrum of entities engaged in sustainable finance today. Read more on the drafting guidance here: https://lnkd.in/dB7_bc8F #loans #credit #markets

Ahead of its Spring National Meeting next week, the NAIC today adopted directives for its RBC Model Governance Task Force for 2025, prioritizing the development of guiding principles for the NAIC’s RBC framework. The LSTA’s Andrew Berlin provides additional color here: https://lnkd.in/eb6C-b5H #loans #credit #markets

The Bank for International Settlements – BIS – which administers the global standard-setter for banks, the Basel Committee on Banking Supervision – last week published a report on private credit, focused on the global drivers of private credit growth. Less alarmist than certain of its peers, the BIS concludes that private credit could bring financial stability benefits relative to banks (due to closed-end structures and match funding) but that the increase in insurance companies and retail investors in the investor base, as well as funds’ leverage and portfolio concentration, should be monitored. Read the full report here: https://lnkd.in/df7KXpHN #credit #funds #markets

Today, LSTA's CEO and Executive Director Sean Griffin kicked things off at the Credit Opportunities Symposium hosted at the NYU Stern School of Business. This event united experts to explore emerging opportunities, evolving distressed investment strategies, and market reactions to the Serta and Mitel decisions. #loans #credit #markets Creditor Rights Coalition / Bridget Marsh

As Nomura highlighted in a recent research report using S&P Global data, there were minimal net credit estimate downgrades in 4Q24 for the first time since 2022. This convergence in the share of ratings actions caps a trend in net downgrades narrowing over the past several quarters and speaks to the resilience of assets in private corporate credit portfolios and managers' diligence in underwriting. #credit #markets #data

The federal banking agencies yesterday released their 2024 SNC report, noting that credit risk remains moderate. The agencies pointed to a modest increase in risk as commitments migrated from special mention to classified ratings amid higher interest rates and margin compression in certain industries. The LSTA’s Andrew Berlin provides additional coverage here:?https://lnkd.in/ea3tjgBp #loans #credit #markets

According to the LSTA’s Hugo Pereira, geopolitical tensions, a looming trade war, and frothy market levels combined to put investors on edge in February. In the broadly syndicated loan (BSL) market, total return shrank to 0.11%, the lowest level since October 2023, as reported by the Morningstar LSTA Leveraged Loan Index. Performance in the BSL market reflected a softer secondary market with the market value component of return registering a loss of 0.50%. However, interest income of 0.60% helped keep total return in the black. Read more here:?https://lnkd.in/eBkKG8ud #loans #credit #markets

On March 5th the LSTA and Loan Market Association (LMA) hosted their Loans Market Conference in London.?Addressing a packed room of delegates, the two CEOs of the Associations kick-started the day and noted the growth of globalization of the markets. The agenda was packed with panelists and speakers who covered the BSL market, liability management transactions, private credit, CLOs, a fireside chat with the Bank of England, the economy, and geopolitical tensions around the globe. Read more here: https://lnkd.in/eaTrfdTQ Look out for registration for the May 15th LSTA and LMA’s Joint Conference in NYC, which will open next month! Check out the slides here:?https://lnkd.in/eB2yMV5Y #loans #credit #markets

Tess Virmani shares the LSTA's response to the Financial Stability Board (FSB) consultation on leverage in NBFI. In a nutshell, leverage is a legitimate financial tool. The FSB's final recommendations should make clear that the universe of nonbank financial intermediation is extremely diverse. Any new policy measure must be carefully tailored to the targeted financial stability risk and must be proportionate to the size of that risk and preserve the benefits of NBFI activity. Read more here:?https://lnkd.in/eWuvje2s #loans #credit #markets

Acting Chair Uyeda eloquently highlighted the importance of focusing the SEC on its traditional mission and the importance of private markets for capital formation and investment opportunity. #SEC #loans #markets