New transaction structures and increasing complexity have continued to proliferate in the loan markets for some time. As a result, data and reporting needs have also become more involved, especially over the past three years. Increased investor demand for data and reports, as well as higher scrutiny from regulators are also playing a part in changing the needs of loan market participants.
In June 2021, Wilmington Trust convened a panel of experts from Alston & Bird LLP and Marston’s PLC to discuss the LIBOR transition. The panelists discussed the impact of the changes as seen in the market together with the various strategies firms are implementing to work towards the deadline of a December 31, 2021 implementation.
The world of broadly syndicated lending faces unique challenges in periods of distress. These challenges can arise when corporate borrowers face liquidity issues affecting their ability to meet the provisions of loan agreements or make payments. They can also emerge more systemically in the case of macroeconomic turbulence that affects spending or credit markets.While COVID-19 may have seemed a harbinger of distress, we found that other less intuitive trends took hold in loan markets.