UK - The use of non-public confidential information and secondary debt trading

Secondary debt trade transparency issues and the use of non-public confidential information become particularly heightened during restructurings. We consider factors relevant to deciding whether to trade, the FSMA market abuse and insider dealing regime, recent industry guidelines as to market conduct, industry wide secondary debt trading terms (LMA) and the general FCA Principles of Business. We also highlight practical strategies a lender might take when possessing confidential information.