LMA restrictions to discourage non-banks from CoComs

Author: | Published: 9 Jun 2011

New Loan Market Association (LMA) guidelines restricting the trading of loans by coordinating committee (CoCom) members may discourage buy-side participants from joining the committees. It could also make the restructuring process more difficult.

Released on June 7, the LMA guidelines on transparency and the use of information restrict the trading of loans based on borrower confidential information (see here for earlier story).

The guidelines said that this includes information received as a result of membership of a steering committee.

If that borrower confidential information is subsequently shared with the syndicate it turns into so-called syndicate confidential information. This information is allowed to...