eli5: How does the loan market works ? 179 viewsJanuary 2, 2024 Question100.55K September 25, 2022 0 Comments I am wondering how the loan market works, why are people willing to buy a company’s loan and why would an aggregate pool of loans be used as a collateral for asset backed securities. How can this be sustainable? In: 0 3 Answers ActiveNewestOldest Anonymous Posted September 25, 2022 0 Comments Loans pay interest and return borrowed principal, so investors who want that guaranteed return will buy others’ debt. It’s sustainable because companies or other entities need to borrow money, and investors want low risk investment opportunities. You are viewing 1 out of 3 answers, click here to view all answers. Register or Login
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