The Debt Exchange: Bringing Liquidity to Secondary Loan Trading
"As with other new technologies, uptake has been slow, but conducting loan sales online is likely to become an important portfolio management tool going forward, as well as a way to reach desired levels of liquidity within the marketplace," saidChristine Barry, wholesale banking analyst at Celent and author of the report.
"Today less than 2% of US secondary loan trading is conducted online, but these platforms have great potential and using them is the market痴 logical next step," said Barry.
This report analyzes the secondary loan trading market and presents a case study on DebtX痴 success in increasing liquidity in the marketplace. It describes the platform痴 capabilities as well as how financial institutions are using it today and how they will use it in the future. Finally, it presents the benefits of online trading and compares the buy-side experience in the offline world to the DebtX experience. The DebtX platform is a good example of how the Internet can be used to advance the secondary loan trading market toward maturity.
A is available online.
of Celent Communications' Wholesale Banking and Institutional Securities & Investments research services can download the report electronically by clicking on the icon to the left.