Overview of distressed trading in selected jurisdictions: Spain

The secondary debt market was traditionally linked to the original syndication of large loans and the transfer by banks of participations in such loans to the secondary market, allowing them to divest some of their exposure. In recent years, however, there have been fewer new primary deals and secondary trading has become more commonly related to loans where syndication has already been completed. Sellers have been motivated by a desire to limit their exposure to bad or doubtful debts and risky assets; and in recent years Spain, Germany, France and Italy have become the main countries of opportunity and speculation for investors, essentially funds.

The purpose of this chapter is to analyse the restrictions and mechanisms available in the different legal systems for investing in debt in Spain, Germany, France and Italy.