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Blockchain Shows Leveraged Loans a Path to the 21st Century

  • European trades take 33 days to settle on average, LMA says
  • Slow settlement deters investors from loans: Credit Suisse
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Credit markets were given a reminder this week of how quickly liquidity can evaporate as even the most highly-traded securities proved difficult to shift in the turmoil sparked by Italy’s political crisis.

Nowhere are investors more aware of that than in the leveraged loan market, where transactions can take weeks to settle. Pressure is now building for the market to adopt technology developed to run crypto-currencies like Bitcoin as a potential way to unlock one of the most arcane corners of finance.