The increasing numbers of investors seeking to expand in markets outside the U.S. has prompted the Loan Syndications and Trading Association to focus on educating the market next year on standards that govern loan trading in overseas markets.
Allison Taylor, executive director of the LSTA, said the increasing globalization of the loan market prompted the association to focus on educating investors about market standards in areas such as Europe and Asia. The association is organizing educational seminars for investors in Hong Kong and Tokyo next year and is planning a similar seminar in London that will focus on credit default swaps and total return swaps. "More people are buying outside of their locale. It will be a huge trend. We want to make sure that we are educating the market," said Taylor.
Overseas markets, such as Japan and Europe, are becoming more attractive to investors seeking to diversify their portfolios. Taylor said Japan, in particular, will be a popular market for U.S. investors. Traditionally, loans are not syndicated in Japan, but the market is developing standards that will allow for syndication. "The Japanese market is really hot. Our investors are becoming more educated to their choices," said Taylor.