PrivEx is a digital exchange regulated by the Monetary Authority of Singapore (MAS) that set up in Asia last year to enable banks and institutional investors to trade syndicated loans. It is now preparing to launch in Europe.
The secondary market in syndicated loans has grown in recent years as banks become increasingly reluctant to hold these assets for long after borrowers have paid them to raise the money.
Facing high capital charges and required to provision from the outset against likely future credit deterioration even on still new and performing loans, banks are no longer through-the-cycle relationship lenders.
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