The Secondary Debt Market

Please choose the most appropriate answer for each sentence.
  • 1

    "With the credit ..... likely to grow worse before it gets better, what are commercial banks doing in the face of this problem?" asks Kingsley Greenland of DebtX.

  • 2

    Increasingly, the answer is to sell loans in the debt market; powered by electronic trading, the global secondary market is now sufficiently liquid on a day-to-day basis to efficiently dispose of non- or poorly-..... debt, as well as high-quality loans, as part of normal portfolio rebalancings.

  • 3

    Loan sales have become a ..... weapon because electronic due diligence, trading and closing allow competitive bidding of everything from multi-billion credits to loans or pools of loans as small as US$1million.

  • 4

    As a result, loan sales are now more attractive than the traditional solution of ..... loan workouts; rather than incur the expense and management distraction of sticking with problem assets, it now makes more sense to sell and put the problems behind.

  • 5

    The market's liquidity has translated into strong price execution, which makes a loan sale strategy all the more ......

  • 6

    Today, debt can be traded at a fraction of the cost and time compared to the traditional, offline environment because electronic trading has eliminated much of the ..... in the process.

  • 7

    The high fixed transaction costs that previously ..... liquidity have largely gone away.

  • 8

    In previous years, ..... diligence required investors to make onsite visits to search boxes of loan documents, collateral information, appraisals, operating statements, court proceedings or other underwriting documents.

  • 9

    If investors decided against making an offer, or another bid was accepted, travel expenses and management time went ......

  • 10

    At electronic trading platforms, investors can now view hundreds or even thousands of pages of loan documents online; ..... of documents can be easily searched, and sophisticated financial modeling is built right into the platform.

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