- Australia’s secondary debt market is
more liquid than ever;
- Following the implementation of Basel III, banks
are looking to sell distressed loans to redeploy capital
elsewhere;
- Distressed debt and special situations players
are looking closely at Australia, and practitioners expect
more informal restructurings than formal
processes;
- However, it’s unclear whether
Australia’s liquid secondary debt market will
encourage the rest of the Asia-Pacific to develop secondary
debt markets.
Australia’s secondary debt market is
now more liquid than ever. The development of this market has
been a game-changer for banks, investors and distressed
companies.
The implementation of Basel III has affected how banks look
at their loans to distressed corporates. Rather than hold onto
those loans until they require restructuring, banks are now
willing to sell...