Court Asks SEC to Weigh In on Whether Loans Should Be Securities
SEC headquarters in Washington, DC.
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A federal appeals court in New York is asking the Securities and Exchange Commission to share its views on whether syndicated loans are securities, the court said in an order Thursday.
Any reclassification of syndicated loans as securities under the SEC would have enormous consequences, forcing issuers and banks to adhere to more regulations and forcing a rethink of the way issuers tap capital markets. The syndicated loan market is around $1.4 trillion in size.