Historically, the LMA has focused on documentation on business investment and debt lending, as well as a comprehensive set of secondary credit negotiation documents. However, in recent years, in response to member demand, the LMA has significantly increased its coverage both from a product and geographic perspective, the latter since then being particularly taken into account in developing markets. These documents (for which the context allows, text, content, tables with macros and electronic interfaces, as well as their underlying assumptions, conversions, formulas, algorithms, calculations and other mathematical and financial techniques) are made available to members of the Credit Market Association, in accordance with the statutes of the Credit Market Association (a copy of which is available here) to facilitate the documentation of transactions in the credit markets. None of the Loan Market Association, Allen-Overy or Clifford Chance assumes any responsibility for any use of these materials or any loss, damage or liability resulting from such use. None of the Loan Market Association, Allen-Overy or Clifford Chance has considered the laws of a jurisdiction that may apply to any of the parties to an agreement using these materials and its purpose. Members should therefore consider all relevant legal, accounting and regulatory issues before using these materials or entering into a transaction in connection with these materials and, if necessary, consulting with their professional advisors. During the 1970s, credit requirements increased, so that lending facilities, traditionally granted on a bilateral basis, were increasingly replaced by larger lines of credit from a lender`s club and then by credit facilities, which were classified in the broader market. In the United States, along with demand on bank balance sheets in the 1980s and 1990s, an officially expandable secondary market has grown, with the increase in the number of asset-hungry non-bank lenders. The clean credit market began to intensify and first crossed the Atlantic with units of American banks based in London. The objective of this guide is to provide an overview of the role of the secondary market in the syndicated credit market and to identify, among other things, active participants in the secondary credit market, available debt securities, the typical anatomy of a trading and the various transfer mechanisms. Consider the following to provide context.
The LMA`s current agreement for loan-financed transactions (excluding footnotes) is 314 pages. A 2010 contract for leveraged loans is 205 pages long, while an example of the equivalent for 2020 is 473 pages. This very brief summary shows how the duration of loan contracts has increased considerably in the context of market examples (and over time). This is due to a number of reasons, some of which are discussed below. The Syndicated Loans Course for Lawyers is a two-day program specifically designed for lawyers that provides detailed studies on all aspects of the primary and secondary credit market. Institutional investors also end up in other credit asset classes such as real estate financing and infrastructure. In addition, many funds have been set up to lend directly to small and medium-sized enterprises, particularly in the United Kingdom, to small and medium-sized enterprises. Banks launched immediately after the crisis were abandoned after the crisis and other sources of financing were opened in the credit market, and many large institutions are now well-established participants. In recent years, many other managers have opened special loan funds and competition for assets is intensifying, especially as several banks have actively attempted to expand their activities in this sector.
