An originate-to-distribute model when dealing with below investment grade companies is considered an attractive alternative for FIs, which have specialized credit monitoring skills, as compared with keeping the loans in their portfolio.

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An originate-to-distribute model involves creating loans and then selling them to investors, and it is considered attractive for FIs dealing with below investment grade companies because they can profit from their credit monitoring skills without keeping the loans in their portfolio.

An Originate-To-Distribute Model When Dealing with Below Investment Grade Companies