The Schuldschein market has for many centuries attracted buy-and-hold investors, but this may change as some arranging banks are offering lenders opportunities to buy sections of their own Schuldschein positions. But many fear that the whiff of secondary markets will see regulators reclassify the instrument as a security, instead of a loan.
According to several sources, two of the top Schuldschein arrangers have begun circulating secondary market opportunities to lenders. But these offerings are, by and large, from the arranging banks’ own exposure to the borrower, as opposed to other investors.
“There are two instances where secondary offerings become available,”