KIC000038 - • Secondary Market Rule 1443 facilitated the...

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Unformatted text preview: • Secondary Market Rule 1443 facilitated the secondary market for loans. Secondary market is essential for mstltutrona I investors, especially trading term loans and any longer term loans (max 5 years). The LSTA -loan syndications & Trading Association help set stands rds for this market. Loan Pricing Corporation prices for these loans. (lPCj has provided mark to market Portfolio managers holding Syndicated Loans and (LO Tranches need to mark their portfolio value each day. S&P had best leveraged data and analysis: LCD = leveraged Com mentary & Data Secondary Market Uquidity • is essential for this market to be useful. liquidity has increased exponentially in this market since the 19905. There is market for: - Par trading (at or above 90 cents per dollar) - Distressed trading (below 90 cents per dollar) During a recession the distressed trading percent shoots up eXHIBIT 6.1 ".,-------------------.., ".+--------------,;---1 • 5 Ex • 6.2 ... rBIT Distressed trading "6. SNC Icart$ dassjf\ed .016 sub ...a"d~rd. t dcubtful. or loss te c----------------~----, .~ 1601--------------0----1 ~ j--------------H--I~--__I 140 i ""-,=~=~:;__---"lH't ~ ~ IOSNC Cla9itned baM 1(1() ! . 1-- -'IiID1sut!ll;5aitr~din~ all ... S ~ 60 zo Til'/lorand Sansone - LSTAHsndbook S&P!LSTA Leveraged Loan Index -------------------700 600 -Amo~nl --~Numb~r O~~:'~".~"~.;~"''_ _.c..:::;:::, "I loan. 500 400 1200 1000 • 800 ---------600 200 ---- 400 -----------/-'---- '00 100 o 1-Dec-96 -r-~~---·-- 0 28-Aug-99 24-May-Q2 17-Feb-OS 14-Nov-Q7 10-Aug-10 Ef..L..lBL....-- S&P!LSTA Leveraged Loan Index r 110 2S~O - Ret~m IndeK -Av~ ski Price Ef-'-'N'--- _ ~ __ 100 90 80 1000 70 500 60 o 1"Dec-96 m 28-Aug-99 24-May-02 17-Feb-05 14-Nov-Q7 1O-Aug-l0 • 6 ...
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This note was uploaded on 09/06/2011 for the course FIN 428 taught by Professor Hood during the Fall '11 term at Iowa State.

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KIC000038 - • Secondary Market Rule 1443 facilitated the...

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