Making the Most of the Leveraged Loans Boom

The pace of leveraged loans approvals in the US continues to accelerate, driven by increased competition between banks and low interest rates. In the first quarter, $308 billion in gross institutional loans were issued – nearly triple the volume of Q4 2020, and $116 billion more than the previous high recorded in Q1 2020. Leveraged loans are currently the vehicle of choice for junk-rated borrowers, sometimes even at the expense of high-yield bonds.

Patrick Walsh, Global Head of Content Management at RIMES, comments: “With leveraged loans set for a record year, we’re seeing an extraordinary demand for associated data on the RIMES Benchmark Data Service. Interestingly, while demand currently mostly stems from US institutions, we’re also seeing growing interest from European institutions.

“As with any market, access to high-quality, accurate and timely data is essential. The data management requirement can be a challenge for in-house teams, as it requires sourcing data from all relevant vendors and then manually validating, transforming and distributing that data to end user systems.

“With RIMES’ Benchmark Data Service, all these essential, but ultimately non-core tasks, are managed on behalf of the firm. We provide seamless access to all relevant datasets from providers such as Credit Suisse, IHS Markit, S&P Dow Jones, and J.P. Morgan. This is inclusive of indices, prices, identifiers, and other loan metrics analytics and information. That means clients have everything they need to focus on their core business and nothing else.

“With a market as active as leveraged loans, institutions need to keep on top of events and be able to react ahead of competitors. RIMES’ BDS provides a lean approach to data management that enables organizations to move at speed and with confidence.”

RIMES’ Benchmark Data Service (RIMES BDS®) is a fully managed service for sourcing, validating, transforming, distributing, and storing index and benchmark data. Contact us to learn more.

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