Syndicated loan prices to stabilise this year, industry group says

PUBLISHED : Thursday, 13 February, 2014, 12:04pm
UPDATED : Friday, 14 February, 2014, 5:14pm

Last year’s drop in the prices of syndicated loans is unlikely to be repeated in 2014, the head of the Asia Pacific Loan Market Association (APLMA) said.

Prices are likely to remain stable, or at least will not fall at the pace they did last year, because central banks are stepping back from pouring liquidity into the market through a loose monetary policy, APLMA chairman Atul Sodhi said.

Support will also come from the strong demand for syndicated loans in China and the Asia-Pacific (excluding Japan), which is expected to continue this year, driven by strong cross-border merger and acquisition activity in the region, Sodhi said in a speech at the APLMA global loan market summit on Thursday.

Syndicated loan volume in the Asia-Pacific (excluding Japan) reached a record year US$450 billion last year, up 50 per cent from the previous year, said Sodhi, who is a managing director at Credit Agricole in Hong Kong.