04 July 2012 6:59am

Australian lenders are taking a more positive view of secondary debt traders and are more inclined to deal with them than in the past, according to an adviser in the field.

A partner in the restructuring and insolvency group at the law firm Ashurst, Tim Sackar, said he was advising a growing number of lenders on the ins and outs of dealing with hedge funds and other secondary debt buyers.

Sackar, who was speaking at a Finsia seminar on insolvency in Sydney yesterday, said: "Hedge funds can create problems but on the positive side they create liquidity and they give lenders...