September 7, 2023 - This week, over 500 members joined an LSTA webinar featuring Jason Kyrwood and James Florack of Davis Polk that homed in on the specifics of the Kirschner case (that determined – happily – that loans are not securities) as well as the major takeaways for market participants. The webinar addressed several important questions. First, why was the Kirschner case so important to the loan market? Second, what were the nature of the Supreme Court and Second Circuit precedents against which the Kirschner case would be measured. Third, what was the role of the SEC in this case? Why were they asked to weigh in and why did they punt? Critically, the webinar also focused on the important takeaways from the case. Not only did the Kirschner case rule that existing loans are not securities, but it provided an important road map for market participants to follow to ensure that loans would continue to be treated as non-securities for the foreseeable future. While that roadmap is generally straightforward, the panelists detailed the nuances that must be navigated.
A recording of the presentation, the presentation deck, and an accompanying article by Elliot Ganz are available by clicking here.