David Karp, Co-Head of Special Situations & Alternative Investments, examines the complexities of modern bank debt trading, emphasizing that multimillion-dollar trades are often agreed to informally—over calls, messages or email—before key terms are fully documented. He highlights recent U.S. and English case law confirming that these oral agreements can be legally binding, underscoring the risks when material terms are not clearly addressed at the time of trade. Karp concludes that market participants should proactively incorporate critical terms upfront to avoid disputes, reduce litigation risk and ensure smoother execution through formal documentation and settlement.