Buy-siders cheer SEC climbdown on loans
Agency stays silent in court case considering whether syndicated loans are securities
Investors have welcomed a surprise SEC climbdown in a case that could have caused chaos in the $1.4 trillion syndicated lending market.
In March, the US Court of Appeals for the Second Circuit asked the Securities and Exchange Commission to opine in the appealed case Kirschner v JP Morgan Chase Bank on whether so-called Term Loan B notes – a standard instrument in syndicated lending – should be considered securities.
Industry participants expected the SEC to argue in favour of such a step
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