3 ms·

I was with you until the end - how does transferability function with this kind of loan arrangement?

• valuearb 6y ago
  On its face it’s clearly harder, just because now you need three parties to sign a new loan agreement. It could be made much easier if the loan is assignable under same terms, especially if parts of the loan are assignable for proportionate parts of the shares. And if the benefits are significant, I would bet this creates a whole tertiary layer of brokers, bankers and lawyers enabling these kind of transactions with standardized loan agreements and clearing houses.