However, there is no study to date that examines the informational efficiency of the secondary market for loans relative to the market for bonds of the same corporation, largely due to the unavailability (at least until now) of secondary market prices of loans. Our study fills this gap in the literature. Specifically, we examine, using a unique dataset of secondary market daily prices of loans from November 1, 1999 through July 31, 2002, whether the loan market is informationally more efficient than the bond market. Given the nature of our sample period (., a time of increasing level of defaults and corporate bankruptcies), we focus our analysis.
