The investor is not a bank. Your assertion is not accurate.

Institutions that maintain loan portfolios through origination or acquisition or engage in other activities that generate credit exposures ("loan market participants" or "LMPs" very often have access to (or are deemed to have access to) confidential information that may include material nonpublic information[1] ("MNPI". MNPI is information not generally disseminated to the public that a reasonable investor would likely consider important in making an investment decision (i.e., to buy, sell, or hold securities). Anti-fraud and related provisions of the United States securities laws and equivalent provisions in the U.K. restrict the use of MNPI in connection with securities transactions (or security-based swaps).[2]



Bank loans are not currently characterized as "securities" under the U.S. federal securities laws or their U.K. equivalents. However, as many LMPs also participate in securities transactions, such LMPs must have compliance procedures to ensure that personnel engaged in securities or securities-related transactions do not have access to MNPI regarding borrowers whose securities the LMP may trade.