Also known as "par loans". Debt which is performing in full as the borrower is not in financial trouble or in a form of insolvency ( www.practicallaw.com/9-385-5821) . Par debt is traded on the secondary market ( www.practicallaw.com/8-107-7216) at its face value because the market considers it likely that the borrower will be able to repay the debt to the lender in full on its maturity date. Par debt is generally traded using LMA ( www.practicallaw.com/0-107-6777) standard documents.
It can be contrasted with distressed debt ( www.practicallaw.com/7-381-0310) .
For more information on trading par debt, see Practice notes, Trading performing loans: overview ( www.practicallaw.com/6-594-9409) and Trading performing loans using LMA documents ( www.practicallaw.com/4-610-9025) .