Packaging not-marked-to-market "private" loans sounds like a textbook re-run of the MBS blowup in the making. In effect it makes those private loans at least partly public.
So you package a mix of intransparently valued loans into investment products and sell them in smaller shares/tranches.
Putting pension savings/401k contributions towards these is only good for the lenders since they now can tap into a vast market of "quick money that doesn't ask too many questions". Other than tapping the casino I can't really see an upside for the investors - who could already buy BDCs and CEFs with this business model.
Packaging not-marked-to-market "private" loans sounds like a textbook re-run of the MBS blowup in the making. In effect it makes those private loans at least partly public.
So you package a mix of intransparently valued loans into investment products and sell them in smaller shares/tranches.
Putting pension savings/401k contributions towards these is only good for the lenders since they now can tap into a vast market of "quick money that doesn't ask too many questions". Other than tapping the casino I can't really see an upside for the investors - who could already buy BDCs and CEFs with this business model.