The LSTA: Setting the Standard for the Loan Market

March 27, 2003

Abstract

Boston, MA, USA March 27, 2003

Secondary Loan Trading Volumes Set To Soar- LSTA Viewed as Catalyst

Celent forecasts that secondary loan trading volumes will exceed $200 billion by 2005, more than 78% higher than last year痴 volumes. While not the only driver, LSTA initiatives have been vital in bringing standards, transparency, and greater liquidity to this market.

In a new report entitled , Celent analyzes the secondary loan trading market. The report illustrates how the LSTA has had a major impact on not only the way loan trades are handled, but also in serving as a voice for market players and as a public forum for issues to be discussed.

"Secondary loan trading volumes have experienced considerable growth over the last decade, but this market is far from reaching its potential. Volumes will rise further as banks increasingly look to the market to offload assets and as institutional investors show a greater demand for the asset class." said Christine Barry, wholesale banking analyst at Celent and author of the report. "This increase will come despite the overall decrease in commercial lending volumes across all industries."

The main thrust of the LSTA痴 objective is two fold: 1) Creating standards in the corporate loan market; and 2) Facilitating communication among major market players. Combined, these two objectives encourage a marketplace where tranparency is the norm and where disputes are resolved in a consistent manner. While the LSTA is not a governing body, it has earned the respect of the industry over the last eight years and has brought standards to an unregulated market.

A is available online.

of Celent Communications' Wholesale Banking, and Institutional Securities & Investments research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

        

Send mail to info@celent.com with questions or comments about this Web site.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA March 27, 2003

The LSTA: Setting the  Standard for the Loan Market

Return to report Abstract

 

EXECUTIVE SUMMARY 3
THE MARKETPLACE 4
  Current Market Conditions 4
MARKET DRIVERS 9
THE LSTA 14
  Background 14
  Role of the LSTA 15
  Significant Initiatives 17
MEMBER TESTIMONIAL: BANK OF AMERICA 18
CONCLUSIONS 20

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