Investment banks are the predominant buyers of HLT loans because they are more informed agents in this market than other investors.

Question

Quizplus · Accepted Answer

Investment banks have more information about the HLT (Highly Leveraged Transactions) loan market than other investors, which makes them better equipped to assess risks and benefits and therefore more likely to invest in such loans. Additionally, investment banks often have relationships with issuers of such loans and can participate in the syndication of the loans.

Investment Banks Are the Predominant Buyers of HLT Loans Because