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Liability Management Exercises: Lender On Lender Violence?

Liability management exercises (LMEs) have gained considerable attention during the past few years. Whether intended for good purposes or not, LMEs have significantly disrupted the traditional loan business through aggressive priming and subordination tactics — leading some to characterize this phenomenon as lender-on-lender violence.

9 minute read October 31, 2025 at 11:05 PM
By
Robert W. Dremluk
Liability Management Exercises: Lender On Lender Violence?

Liability management exercises (LMEs) have gained considerable attention during the past few years. Prior to the financial crisis a borrower was prohibited under the terms of its loan agreement from purchasing its loan.

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