2 Comments
 

The market just isn't as liquid as bonds, primarily due to the major difference in bonds and loans; bonds are public loans are private. This leads to greater admin whilst getting deals through.

The portfolio you're buying the loans onto is then also part of covenant decisions, having to consent to waivers, attend investor presentations etc....

The loans market is much more of a relationship business, with most BBs holding to maturity. However the LMA (in the UK) are pushing for more standardised documentation to increase liquidity and evolve the secondary market, which is quite active, into something more akin to the bond market.

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