Senior loans cannot be distributed by participation.

Question

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Senior loans can be distributed by participation, which is a common way for lenders to spread their risk and increase their overall return on investment. Participation allows multiple lenders to share in the interest payments and principal repayments generated by a senior loan, in proportion to their respective investments. This can help to diversify the lender's portfolio and provide greater liquidity, since they can sell their participation interests to other investors if desired.

Senior Loans Cannot Be Distributed by Participation