Issues surrounding the increasingly global loan market and market education will be key focus areas for The Loan Syndications and Trading Association in its 10th anniversary year, according to Scott Krase, portfolio manager and senior partner with Oak Hill Advisors and the LSTA's incoming chairman. Krase, who has been officially involved with the LSTA for three years, was selected last week to replace outgoing Chairman Don Pollard, managing director and global head of the syndicated loan group at Credit Suisse First Boston, on Feb. 15.
"One of the highest priorities is to spend a lot of time, effort and resources on educating the market not just on what the LSTA is doing and has done, but the benefits that it has brought to everybody involved in the loan market," said Krase. The second major platform will be what Krase terms "the beginnings of globalization." Krase noted there are growing loan markets in Europe and the Pan-Asian region. Although the LSTA cannot make the markets seamless across national boundaries in a year, it is definitely going to take the first couple of steps toward really improving how the asset class is managed across borders. Krase said improved documentation and promoting standard practices will further the cause.
In other changes, the members have also selected Peter Vaky, managing director and head of syndicated finance at SunTrust Robinson Humphrey Capital Markets, and Jonathan Calder, managing director, head of loan sales and trading for Citigroup, as the new vice chairs. Eric Chilton, managing director, global loan syndications at Barclays Capital, is continuing as treasurer.
Krase is not the first buyside chairperson. Mike McAdams, president and cio of Four Corners Capital Management, held the role several years ago. Bankers have held the spot the past few years though. After a strong 2004, which saw a 37% increase to 175 members, the overwhelming view was that it was the right time for a buyside representative to become chair. "The buyside institutions represent about half of the LSTA. It's doing a very good job of having a full representation across both its board and its officers that reflects the way the market has matured," said Krase.
