Understanding the informational efficiency of loans is important because the secondary market for loans has grown rapidly during the past decade. The market for loans typically includes two broad categories, the first is the primary or syndicated loan market, in which portions of a loan are placed with a number of banks, often in conjunction with, and as part of, the loan origination process (usually referred to as the sale of participations). The second category is the seasoned or secondary loan sales market in which a bank subsequently sells an existing loan (or part of a loan)
