Opportunities and challenges for banks in the secondary loan trading market

The shift from traditional originate-to-hold models to OTD strategies allows banks to manage risk, improve profitability and focus on core competencies. Explore these key insights:

  • The growing secondary loan trading market The growth of the global secondary loan trading market underscores the value of OTD approaches, with U.S. secondary market trading volumes reaching $253 billion in 2025.
  • Obstacles to implementing OTD Despite the advantages of OTD models, challenges such as outdated infrastructure, fragmented data systems, and complex regulatory requirements remain significant hurdles.
  • The power of implementing AI AI-powered technologies offer innovative tools to automate loan origination, enhance risk assessment, and ensure compliance with a shifting regulatory landscape.
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