Schulte Roth & Zabel co-managing partner Marc Elovitz recently spoke with Creditflux editor Tom Davidson on the SEC’s decision not to take a position in an ongoing court case about whether U.S. leveraged loans are securities. In the article, “Loan market breathes sigh of relief as SEC declines to comment on Kirschner case,” Marc cautioned that this should be a wake-up call for the loan market, "Industry participants need to consider what the future looks like," a reprieve for the loan market may only be temporary as the fundamental problem remains unsolved.
"The immediate crisis has been averted, but the underlying legal issue hasn't gone away. Just because the SEC bowed out here doesn't mean they won't address the subject in the future, and there are pretty strongly held views by several regulators."
Read the article here. (subscription required)
Marc also contributed to the Refinitiv Loan Connector article, “Market Relieved After SEC Declines to Weigh in on Loan Securities Court Case.”
Read the article, courtesy of LPC, here.