David Karp discusses how developments in distressed debt and claims trading continue to highlight the importance of careful structuring and documentation in secondary market transactions. He emphasizes that evolving case law and market practices are reinforcing the need for clarity around transfer rights, risk allocation and creditor status, as these factors can materially impact enforceability and outcomes. The article underscores that as the market grows more sophisticated, investors must combine thorough diligence with precise contractual protections to navigate legal uncertainty and mitigate trading risk.

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