Secondary loan prices appear to be firming up from pre-holiday levels

By Sara Rosenberg

New York, Jan. 3 – The leveraged loan secondary market was generally categorized as OK on Thursday, with one trader saying that prices seem to be “solidifying.”

The trader pointed to Avis Budget Group Inc.’s term loan as an example. He said the term loan was quoted at 97½ bid, 98¼ offered by late day, compared to levels of 96¼ bid, 97 offered before the Christmas holiday.

Avis, a Parsippany, N.J.-based provider of vehicle rental services, did not have any company specific news prompting the improvement, causing the rise to be viewed as a byproduct of the overall market tone, the trader added.

Another market source said that “offers seem to be holding firm, which suggests lack of outflow pressure and the bids will have come up to execute.”

For the week ended Jan. 2, U.S. leveraged loan funds experienced $2.3 billion of net outflows, according to Lipper. Since the latter half of November, there have been about $15.7 billion in outflows.

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