November 27, 2024 - Secondary loan trading volume surged 15% in October, hitting $79.4 billion, the highest level since the second quarter of 2022 and the third-largest monthly total on record, according to the LSTA Trade Data Study. Monthly volume was $13 billion above the LTM average, with daily trading activity reaching $3.4 billion. This strong performance pushed year-to-date trading totals to $693 billion, up 13% from the same period last year and in line with the record volumes seen in 2022. If current trends continue, 2024 is on track to surpass the $824 billion record set two years ago. Back in 2022, the loan market was highly reactive and volatile, driven by aggressive interest rate hikes from the Federal Reserve. This year, by contrast, the market has been much calmer, buoyed by solid investor demand but constrained by a lack of new loan supply.  That trend continued into October, when the share of loans trading at or above par spiked to almost 50% once again. October also saw the average trade price rise to 97.6, while the median price climbed to 99.9; levels not seen since 1Q22. At the same time, the median bid-ask spread tightened to just 50 basis points, marking the narrowest spread since 1Q22 (as well).