Latest news with #LSTA
Yahoo
a day ago
- Business
- Yahoo
LSTA Applauds Executive Order Increasing 401 (K) Access to Private Markets Investments
NEW YORK, August 07, 2025--(BUSINESS WIRE)--LSTA, the trade association for the U.S. corporate lending market, today issued the following statement regarding the EO improving access of 401(k) and other defined contribution plans to private markets investments. "LSTA believes that access to private markets such as private corporate credit assets in 401(k)s will drive better investment outcomes for the overwhelming majority of American workers who depend on these plans for retirement. Enabling well-diversified, professionally managed 401 (k) plans to incorporate the benefits of private markets, with appropriate safeguards in place, is an important step in allowing 401(k) plan participants to access the types of asset allocations and diversification that have been successfully used in defined benefit plans. As the population of public companies continues to shrink, access to private market investments is essential to enable Americans to meaningfully diversify their portfolios and benefit from increasingly important investment opportunities. The vast majority of American private sector workers do not have access to the investment benefits of private markets. LSTA and our members are committed to playing our part in providing such access along with the important safeguards that go along with it." View source version on Contacts Rich Myers, lsta@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
2 days ago
- Business
- Business Wire
LSTA Applauds Executive Order Increasing 401 (K) Access to Private Markets Investments
NEW YORK--(BUSINESS WIRE)-- LSTA, the trade association for the U.S. corporate lending market, today issued the following statement regarding the EO improving access of 401(k) and other defined contribution plans to private markets investments. 'LSTA believes that access to private markets such as private corporate credit assets in 401(k)s will drive better investment outcomes for the overwhelming majority of American workers who depend on these plans for retirement. Enabling well-diversified, professionally managed 401 (k) plans to incorporate the benefits of private markets, with appropriate safeguards in place, is an important step in allowing 401(k) plan participants to access the types of asset allocations and diversification that have been successfully used in defined benefit plans. As the population of public companies continues to shrink, access to private market investments is essential to enable Americans to meaningfully diversify their portfolios and benefit from increasingly important investment opportunities. The vast majority of American private sector workers do not have access to the investment benefits of private markets. LSTA and our members are committed to playing our part in providing such access along with the important safeguards that go along with it.'
Yahoo
13-06-2025
- Business
- Yahoo
NY Lawmakers Near Deadline to Pass Bill Targeting Emerging Market ‘Vulture Funds'
(Bloomberg) -- New York state lawmakers are within days of a deadline to pass legislation targeting so-called vulture funds that has languished in the local legislature for the past two years. Shuttered NY College Has Alumni Fighting Over Its Future Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Renters Brace for Price Hikes After Broker-Fee Ban Do World's Fairs Still Matter? NY Long Island Rail Service Resumes After Grand Central Fire The state Assembly is expected to make a decision on the so-called Champerty bill before adjourning next Tuesday. If it doesn't pass by then, supporters will have to wait until January for the debate to resume. The legislation, which has already passed the local senate, would bar investors from purchasing distressed debt at a deep discount with the intention of suing foreign governments after they've defaulted. It also cuts the 9% interest rate on past-due coupons on defaulted sovereign emerging-market bonds, instead matching the new rate to the going yield on one-year Treasury bills, currently at 4.08%. After repeated failed attempts since it was first introduced in 2023, the proposal has gained momentum recently, assembly member Jessica Gonzalez-Rojas — the bill's sponsor along with state senator Liz Krueger — said in an interview. She emphasized that the goal is not to disrupt the sovereign debt industry. As of Friday, she's still trying to bring it to the chamber floor for a vote. The bill is part of a broader, multi-year effort by New York lawmakers, nonprofits and charities to overhaul the protracted process of revamping defaulted government debt. Even as emerging economies move past a wave of post-pandemic defaults, Ethiopia and Lebanon are still negotiating on their debt. If passed, the legislation would impact roughly half — over $800 billion — of all hard currency sovereign bonds issued by developing countries. Industry groups representing Wall Street investors have previously raised concerns over proposals focused on sovereign debt. But this year, that criticism has dimmed. The bill 'could contribute to the ongoing international efforts to support orderly and predictable debt restructuring processes by reducing incentives for disruptive vulture fund litigation, which is a laudable goal,' a spokesperson for the International Monetary Fund said in an emailed statement. The Fund's objective is to ensure sovereign debt restructuring to be 'predictable, transparent, and orderly, and that it ultimately restores debt sustainability,' the statement added. Still, organizations including the Securities Industry and Financial Markets Association, Creditor Rights Coalition and LSTA have in recent weeks sent letters to state lawmakers seeking to block the proposal, arguing it would have 'wide-ranging' and 'unintended negative consequences' for global financial markets. 'It will also be tremendously damaging to New York state,' said Elliot Ganz, LSTA's head of advocacy. 'You're just asking for the migration of that business to places like Texas and Florida.' A separate bill known as the Sovereign Debt Stability Act was also reintroduced this year. It would, among other things, ramp up oversight on how defaulted government debt is restructured with creditors and cap the amount private creditors could recoup during a debt revamp. It has failed before and hasn't progressed this year. --With assistance from Zach Williams. American Mid: Hampton Inn's Good-Enough Formula for World Domination The Spying Scandal Rocking the World of HR Software New Grads Join Worst Entry-Level Job Market in Years As Companies Abandon Climate Pledges, Is There a Silver Lining? US Tariffs Threaten to Derail Vietnam's Historic Industrial Boom ©2025 Bloomberg L.P.
Zawya
22-05-2025
- Business
- Zawya
Private credit touts resilience amid uncertainty: IFR
Recent market volatility has demonstrated the resilience of private credit, and the asset class is well positioned to withstand any future economic turbulence, according to industry participants. At the US Private Credit Industry Conference on Direct Lending, hosted in Nashville by the loan trade group, the LSTA, and events company DealCatalyst, speakers discussed avenues for growth, such as the proliferation of funds geared towards retail investors. Conference speakers largely agreed that the momentary pause in the broadly syndicated loan market following US president Donald Trump's April announcement of sweeping tariffs presented an opportunity for private credit to take market share. Though market activity has since normalised, there remains a broader trend towards private markets, they said. 'Private credit has been taking share from the liquid credit markets for a while,' Kerry Dolan, managing partner at Brinley Partners, who spoke on the conference's opening panel on Monday morning, told IFR. 'We expect that shift to continue. Private credit also typically increases in popularity during times of volatility as it reduces market risk.' Leveraged buyout activity, however, remains relatively sluggish given a slump in valuations for private equity portfolio companies and, more recently, a cloudier economic outlook given uncertainty around tariffs. Even so, said Eric Muller, portfolio manager and partner at Oak Hill Advisors and CEO of the firm's business development companies, his firm has had strong investment opportunities come its way. 'The buyouts that are happening right now are of very high quality,' Muller said during a Monday afternoon panel on large-cap lending. 'We're seeing add-ons within portfolio companies, as well as refinancings and other transactions that a borrower may need to execute right now and doesn't have the flexibility to wait.' Good exposure Private credit has so far been largely insulated from worries over tariffs. Several private credit managers have estimated that less than 10% of their portfolios face direct exposure to such import taxes. Investor sentiment towards the asset class has remained largely positive in the face of market volatility, Dave Donahoo, head of Americas – wealth management alternatives at Franklin Templeton, told IFR. Donahoo also spoke on a Tuesday morning panel about retail access to private credit investments. 'Private markets price on fundamentals, not market sentiment or technicals,' he said. 'So it's moments like this that the wealth management community – the individual investor – is reminded why having exposure to private markets helps their overall portfolio.' There are concerns, however, about the impact that tariffs may have on the economy at large. A slowdown could weigh on the performance of private credit borrowers, some of which already face challenges from persistently high interest rates, as S&P noted in a May 9 report. Nonetheless, conference speakers were largely sanguine about private credit's ability to navigate a potentially weakening economy. 'We're coming off a relatively strong backdrop if we were to head into a recession,' said Jonathan Bock, a senior managing director at Blackstone and co-CEO of the business development companies Blackstone Private Credit Fund and Blackstone Secured Lending Fund. Certain situations, such as stagflation, are 'challenging for equities but can be okay for credit', said Colbert Cannon, a managing director at HPS Investment Partners. Bock and Cannon spoke alongside Muller on Monday afternoon. Sizing up While the commentary regarding the prospects for private credit was largely upbeat, some speakers expressed caution regarding investment selection, especially as the asset class has taken on large transactions that overlap with the broadly syndicated market. Matt Freund, managing director at Barings and president of Barings BDC, said his firm is not actively seeking to chase after these large deals. 'I'm sceptical of the idea that origination is proprietary in the upper end of the market,' Freund said on a panel focused on investment strategy. But competition is also fierce for loans to lower-middle-market borrowers, and spreads have also tightened significantly among that segment, he said. Though his firm does not emphasise seeking larger transactions, according to Anthony DiNello, head of direct lending at Silver Point Capital, it does have strong relationships with banks, which have proven beneficial in periods of market dislocation. 'Some of our best deals come through relationships with Wall Street banks,' DiNello, who spoke on the same panel as Freund, said.
Yahoo
29-04-2025
- Politics
- Yahoo
DPI receives part of federal library funds, but uncertainty will affect grant services
Wisconsin libraries rely on funding provided by the federal government through the Library Services and Technology Act Grants to States Program. (Photo courtesy of Madison Public Library) The Wisconsin Department of Public Instruction (DPI) received $1.6 million in grants from the federal Institute of Museum and Library Services (IMLS) to support library operations and programming last week, though uncertainty remains for the program. Wisconsin libraries rely on funding provided by the federal government through the Library Services and Technology Act (LSTA) Grants to States Program, but that program has been in danger since President Donald Trump signed an executive order to downsize and begin the process of eliminating the agency. DPI and libraries throughout the state have warned that eliminating the funding would be a blow to statewide support for library programs as the grants fund staff for programs including the interlibrary loan system and other grants. The notification message from IMLS to DPI stated that the partial payment is for the time period through April 2025. It also notified the state agency that 'any additional amounts are subject to the availability of funds, IMLS discretion and other actions' and that 'should those conditions be met, IMLS anticipates issuing supplemental awards and will send the allotment table at that time.' 'At this time, the DPI has not received a final allotment table indicating the amount of funding Wisconsin will receive,' the DPI stated in an update to libraries Tuesday afternoon. 'This is not the typical fashion in which these funds are granted to states, but receiving a partial award provides some stability and relief in the short term.' The uncertainties for federal funding will still have some impact on the services that DPI carries out. Typically, the DPI Library Services office opens grant subawards, which are grants funded by federal funds and administered by the state agency, to library systems in Wisconsin in July. That won't happen this year due to the uncertainty surrounding the amount and timing of future Grants to States funds. 'The DPI will prioritize the Library Services salaries and the tools necessary to do their jobs with this partial allotment,' DPI said in the email. The Library Services team is made up of about 20 people with 16 of the positions funded with federal dollars. 'The team will reassess the viability of providing subawards once more is known about the future of IMLS and LSTA funding.' The amount that the state received is about half of the $3.23 million that Wisconsin received for the Grants to States Program received in 2024. Ben Miller, DPI library services director, had previously told the Examiner that the expected payment would serve as the next milestone for the state agency. There was uncertainty surrounding whether the payment would be sent given the gutting of staff for the IMLS office and the fact that other grants for libraries and museums have already been cut. Wisconsin is part of a multi-state lawsuit challenging the cuts to IMLS. Miller had said that even if the agency received the payment, it will likely be cautious in proceeding with certain actions as the Museum and Library Services Act of 2018, the federal law that the grant program relies on, is up for renewal this fall. DPI spokesperson Chris Bucher said in an email to the Examiner that the state agency is 'encouraged' by the first payment and is 'optimistic given the IMLS note about issuing the supplemental awards.' 'Our top priority remains being [of] service to Wisconsin kids and communities,' Bucher said. DPI also it would continue to provide updates to libraries as the situation evolves and thanked the library community for 'sharing your stories, working with elected officials, and remaining steadfast in the incredible services you provide every day.' Libraries across the state have been working to inform the public about the potential cuts and to advocate for the federal funding with lawmakers. 'Keep being loud and proud about the meaningful work happening in your libraries and communities,' DPI wrote. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
