Loan Trading: Basics

Loan Trading: Basics

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

Financial institutions buy and sell parts of syndicated loans in the secondary market. A secondary market is created when a syndicate participant decides to sell a part or all of its rights and obligations under the credit agreement to a third party. Here we look at the historical development of the secondary loan market. We also look at participants, types of loan, reasons for trading, marking to market, and credit ratings.