Private placement debt is a hybrid between a conventional loan and a bond.

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Private placement debt is a form of financing where a company raises capital by selling debt securities to a select group of investors rather than offering them to the public. It is a hybrid between a conventional loan and a bond. It has some characteristics of loans, such as a fixed interest rate and repayment schedule, while also having features of bonds, such as being tradeable on the secondary market.

Private Placement Debt Is a Hybrid Between a Conventional Loan