Secondary loan trading volume was up 20.3% year-to-date compared with the first three quarters of 2013. Third-quarter trading volume rose 37.2% from a year ago. Trading volume totaled $475.5 billion through the first three quarters of 2014, up from $395.1 billion a year ago.
The Loan Syndications and Trading Association said last week that "rise in trading activity reflects increases in both visible demand for and supply of loans." According to the release, collateralized loan obligation issuance has totaled more than $100 billion in 2014, and S&P/LSTA Leveraged Loan index outstanding issuances grew by $122 billion.
The LSTA said 2014 is on pace to be a record year for trading volume – the current run rate of $638 billion is set to break the 2007 record high of $520 billion.
The S&P/LSTA Leveraged Loan index was up 2.4% year-to-date through October. The Barclays U.S. Corporate High Yield index returned 4.7% during the same period.