Loans should not be traded based on borrower confidential
information - even if both parties have access to the same
level of information, according to new guidelines issued by the
Loan Market Association (LMA).
The LMA guidelines on transparency and the use of information,
released on June 7, note that "market participants should not
trade on material information which has not been made available
to the whole of the lending syndicate".
In the section on best practice, the LMA said "this applies
even where the counterparty to that trade has access to the