The LSTA: Setting the Standard for the Loan Market

March 27, 2003


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 for more information.


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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 operating unit of Marsh & McLennan Companies [NYSE: MMC].

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Michele Pace
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Table of Contents


Boston, MA, USA March 27, 2003

The LSTA: Setting the  Standard for the Loan Market

Return to report Abstract


  Current Market Conditions 4
  Background 14
  Role of the LSTA 15
  Significant Initiatives 17

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