---
title: On the Blotter: How are you navigating the loan market in a rate cutting environment?
description: September updates from Octaura
image: https://news.octaura.com/hubfs/On%20the%20Blotter.png
---

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## On the Blotter: How are you navigating the loan market in a rate cutting environment?

 Oct 2, 2025

**How are you navigating the loan market in a rate cutting environment?**

Off the back of September rate cuts, muted flows were expected – as participants focused their efforts on the primary markets – however, the rate cut cycle continues to support credit fundamentals. A continuous steady decline in base rates could promote investors to move out of floating rate debt throughout the rest of 2025.

As of mid- September, we saw a large portion of the loan market trading above par, reflecting stronger demand and tighter credit spreads. On Octaura between Q2 and Q3, we saw volumes increase - 26% by trade volume, and 32% by inquiry volume.

To visualize the rise in loans trading above par, we pulled the count of unique loans with the Best Bid above par on Octaura throughout August and September.

![% bid above par](https://news.octaura.com/hs-fs/hubfs/%25%20bid%20above%20par.png?width=725&height=427&name=%25%20bid%20above%20par.png)

**Better CLO BWICs are on Octaura**

With CLO issuance and liquidations expected to increase against this market backdrop, as rate cuts reduce demand for floating rate assets which can trigger outflows, Octaura’s infrastructure is well-suited for price discovery and execution. In September, Octaura announced [the launch of its multi-protocol trading platform for CLO](https://news.octaura.com/octaura-unveils-clo-trading-platform?utm_campaign=11129136-FY25%20-%20Loans%20Sellside%20Prospect%20Engagement&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz--wlrEGryyTWIcBIwoZADPv1cbc9zlflGNn567ELcPfsljWyxYMD63AQrDvn5EFWP0FtVo9) trading.

The [complex terrain of this asset class](https://news.octaura.com/tackling-the-complex-terrain-of-clo-secondary-trading?utm_campaign=11129136-FY25%20-%20Loans%20Sellside%20Prospect%20Engagement&utm_source=hs_email&utm_medium=email&_hsenc=p2ANqtz--wlrEGryyTWIcBIwoZADPv1cbc9zlflGNn567ELcPfsljWyxYMD63AQrDvn5EFWP0FtVo9) has led to outdated, manual and time-consuming workflows across trading and execution. With the launch of our CLO platform, Octaura is tackling this opaque marketplace to deliver centralized and transparent ways to execute your CLOs – in some cases, in less than 30 minutes.

1. All market prices, data and other information (including that which may be derived from third party sources believed to be reliable) are not warranted as to completeness or accuracy and are subject to change without notice. Octaura disclaims any responsibility for any loss or damage arising from any reliance on or the use of this material in any way. The information contained herein is as of the date and time referenced only, and Octaura does not undertake any obligation to update such information. This marketing material is provided by Octaura for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument. All investments involve risk, and past performance is not indicative of future results. 

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