12.2.22
The U.S. Court of Appeals for the 2nd Circuit is expected to hear arguments for an appeal in early 2023 in the Kirschner, v. JPMorgan Chase Bank, N.A. court case. The 2020 case held that syndicated term loans are not securities, and therefore are not subject to securities laws. Many market participants argue that a decision to redefine certain syndicated loans as securities could negatively impact the syndicated loan and CLO markets by making it more expensive for banks to execute these types of loans, which could curtail access to credit for many businesses.