See The Loan Syndications and Trading Association, "Bank Loan Trades and Custody of Client Assets" (Jul. 12, 2017), available at https://www.lsta.org/news-and-resources/news/bank-loan-trades-and-custody-of-client-assets.
Buckley Ratchford, who runs the firm's global bank loan trading and distressed investing, has also announced his intentions to leave.
Mrs. Van de Castle, 33, is the director of market data at the Loan Syndications and Trading Association, the trade association for corporate lending and loan trading.
"This is probably the most dramatic situation I have ever seen in the loan market," one executive who monitors loan trading said.
But modern proponents of loan trading argue that they are not generally dealing with bad or problem loans (though note that the chart shows how the distressed component is increasing).
Syndicated loan trades, for example, can take 20 days or longer to settle, thus adding risk, which requires more capital.
Many of these problem loans trade on eBay-like auction Web sites, which have grown rapidly over the last year.
Most of these loans trade for a fraction of their original value, a tantalizing target for investors.
India's figures are understated, they say, because they exclude foreigners' reinvested profits, the proceeds of foreign stockmarket listings, intra-company loans, trade credits, financial leases and so on.
