In the mid-1990s, the secondary market in Europe itself grew for banks wishing to manage their credit portfolios more proactively, whether for reasons of individual exposure, return on equity or other means. Self-account trade has strengthened its growing relevance. Despite this, it was clear to practitioners that the market, as it was at the time, had no standard codes of practice and was inefficient and opaque. Subsequently, a group of banks agreed to create a market association to promote transparency, efficiency and liquidity, and the LMA was established in late 1996. Following positive feedback from members on the proposed bonds and at the request of members, the creation of a standard form for private placement documents began in January 2015, with documents in loan and note format. The project was supported by the International Capital Market Association (ICMA) and the ACT. This has made valuable contributions, notably to the note format (developed in agreement with ICMA) and to the concerns of the borrower/issuer (in the case of the ACT). The Loan Market Association (“LMA”), established in late 1996, is the commercial organisation of the syndicated credit market in Europe, the Middle East and Africa (“EMEA”). Indeed, regulatory issues remain at the top of the agenda and the LMA`s focus on lobbying and lobbying will continue unabated. Other trends will also determine the centre of gravity of the LMA`s work through 2020 and beyond. Environmental, social and governance issues are increasing for market participants in the unionized credit market as a whole. The institutional investor base has grown further and non-bank financing has grown in importance in all asset credit categories, both in parallel with banks for syndicated loans, through a bespoke banking/fund partnership, through Unitranche or other forms of direct lending.
More borrowers in developing markets will need financing across internal borders; The LMA will continue to expand its work in these markets to promote acceptance of regional standards. The LMA expects the focus to be on operational effectiveness and the LMA to partner fully with partners and practitioners across the market to identify problems, find solutions and find dene changes. Fintech will undoubtedly develop to transform the financial services sector and it will be increasingly important to act in terms of ideas and knowledge in this area. These documents (for which the context allows, text, content, tables with macros and electronic interfaces, as well as their underlying assumptions, conversions, formulas, algorithms, calculations and other mathematical and financial techniques) are made available to members of the Credit Market Association, in accordance with the statutes of the Credit Market Association (a copy of which is available here) to facilitate the documentation of transactions in the credit markets. None of the Loan Market Association, Allen-Overy or Clifford Chance assumes any responsibility for any use of these materials or any loss, damage or liability resulting from such use.