Loan Market Association moves to bolster European secondary market liquidity

David Karp, Co-Head of Special Situations & Alternative Investments, discusses how evolving case law and market developments are shaping risk allocation and enforceability in distressed debt and claims trading transactions. He highlights that courts are increasingly focused on the specific language of trading agreements, underscoring the importance of clear drafting around transfer rights, creditor status and related protections. The article emphasizes that as the market grows more complex and competitive, participants must carefully structure transactions and documentation to mitigate legal uncertainty and protect their positions.

(subscription required)