Whole loan trading

Syndicated Loan Trading?  Read loan market update. Know the types of deals and types of lenders you'd be doing biz with (Term Loan A - Banks / Term Loan B - instutitional lenders (CLOs, BDCs, credit funds). Pls copy+paste job description. Here's 2 quick mkt updates below, 1st on the secondary market:

1) LPC 100 reaches 96 level for the first time since early March: 

The LPC 100 reached a new post-Covid milestone last week, surpassing the 96 level for the first time since March 5. Average bids for Refinitiv LPC’s largest, most liquid US secondary cohort of loans closed Friday at the 96.33 level. The LPC 100 reached as high as 99.21 back on January 16 but plummeted to a nearly 11-year low of 77.87 after the coronavirus pandemic sent financial markets spiraling.  As the number of US Covid-19 cases has gone, so has the LPC 100, which rose on June 10 to 95.28, before the number of cases spiked again and the LPC 100 sank to as low as 93.07 on June 30. Since that time, market sentiment has improved in tandem with the reduction of new daily case numbers coming down from July highs. Corporates held up well during earnings season, while the US economy slowly gains more traction.

2) LEVERAGED
Issuers stormed out of the gates after the Labor Day Holiday in the US last week, following a paltry August that saw just US$31.3bn raised in the US leveraged loan market (Fig. 3).

While the pipeline for new, jumbo financings funding mergers and acquisitions remains thin, several borrowers have launched opportunistic deals to either refinance debt or raise new money to pay shareholder dividends.

Credit conditions remain borrower friendly as support from the US Federal Reserve to prop up the capital markets has tightened overall yields amid what's expected to be a prolonged low interest rate environment.

Moreover, a lack of deal supply in the loan market has left cash-rich investors ready and willing to pile into transactions in the post-Labor Day activity.

Last week, at least five borrowers announced leveraged deals that will be used to pay their shareholders, while others are refinancing debt or funding acquisitions.

Snack food maker Shearer's Foods is raising US$1.325bn in first- and second-lien loans to repay debt and fund a US$388m dividend. Power plant operator EFS Cogen is raising US$1.05bn to refinance debt and complete a portable dividend. And cable company Radiate is shopping a US$1.2bn loan to also repay debt and fund a dividend, banking sources said last week.

Elsewhere, healthcare technology company Waystar is raising US$620m to back its acquisition of eSolutions and fleet software provider Omnitracs is raising US$355m to fund its purchase of SmartDrive Systems.

“There continues to be an overabundance of capital right now. So if you're an issuer, you should take advantage of this market,” one senior banker said.