Institutional Investor Committee
The Loan Markets Association (“LMA”) has established an Institutional Investor Committee to better represent the interests of our investor members and determine future activities that align with the LMA’s strategic goals – enabling and promoting liquidity, efficiency, and transparency across the loan markets.
The Committee will consist of senior representatives from both the buy side and sell side – initially Deutsche Bank, Morgan Stanley, Invesco, Barings, M&G, and PGIM – with the first meeting to be held in October.
The LMA is also hosting a networking evening for institutional investors in November to support the launch of the new committee but more importantly to update on key LMA objectives. This event will highlight the committee’s formation, provide updates on primary and secondary settlement times, and review ongoing work in private markets.
Committee Purpose and Goals
The LMA offers a unique value to the loan market as the only association encompassing arrangers, lenders, borrowers, sponsors, and limited partners. Establishing this committee will allow us to prioritize and focus on key areas of importance to our members. The committee’s remit will include market intelligence, research, documentation, regulatory engagement, education, and thought leadership.
This committee will enable the voices of the industry to be heard more clearly and will act as a forum to identify which issues have the most impact. All forms of activity will be channelled through a formal submission which will be assessed and prioritised based on the activity alignment to the overall loan market – efficiency, liquidity, transparency, and sustainability – to ensure it benefits a broad spread of members.
The initial activity will cover market intelligence and research, specifically on liquidity and trading volumes, default and recovery analysis, as well as supporting the launch of the PDSC guidelines as these become operational across the markets.
Composition
Co-Chairs – Morgan Stanley and Invesco
Members – Deutsche Bank, Invesco, Barings, M&G, PGIM
Others – as invited
The committee will review its composition annually and allow for rotation of LMA member firms. Meetings will occur quarterly with additional ad hoc meetings as required.
Process
The Committee will invite requests from members’ firms to consider or review a named piece of work, issue, or output that they believe will benefit the loan market. The Committee will also invite requests from members to consider emerging market or product innovation. Working Groups will be established with SME practitioners with feedback and progress reporting back into the committee and to the LMA board. Members will be selected based on their relevance, decision making, and ability to succeed.
All outputs will be formal documented requests outlining a required book of work and assessment of materiality, which will be available in summary form to members. The book of work will set out defined outcomes and be supported by an accountable sponsor and LMA lead, along with an engaged and collaborative group of buy side and sell side firms.
If you have any questions about the Institutional Investor Committee please contact [email protected]
