Post by ilmoro on Mar 24, 2021 21:18:31 GMT
Hospitality business, so no cash flow and late payments - credit event.
I also notice that AC is now pasting the following text on any capital value downgrades.
"Please note that a discounted capital value is only an estimate of a loan’s capital value based on a perceived higher risk of loss. It will not be enforced on the secondary market for trading in loan holdings between selling and buying Lenders who are free to trade at a price agreed between them. However, it is expected that trades which do occur are most likely to be at the discounted capital value.
If trading in this loan is reactivated, Lenders will be asked to confirm that they have read and understand the information in relation to a capital value discount before they can complete a sale or purchase of any holding in the loan.
We do not accept any responsibility or liability to Lenders for any loss they may incur as a result of holding, buying or selling any holding after they are notified of any potential or actual capital value discount on a loan.
Further information on capital values and risk categories can be found on the Credit Risk Assessment page of our website."
If trading in this loan is reactivated, Lenders will be asked to confirm that they have read and understand the information in relation to a capital value discount before they can complete a sale or purchase of any holding in the loan.
We do not accept any responsibility or liability to Lenders for any loss they may incur as a result of holding, buying or selling any holding after they are notified of any potential or actual capital value discount on a loan.
Further information on capital values and risk categories can be found on the Credit Risk Assessment page of our website."
Is this something new? Can one infer that more suspended and defaulted loans might be allowed to be tradeable in the future ? Or is it just arse covering for those downgraded loans which remain tradeable?
