Recent trades in the $585 million debt load of Allco Finance Group at about 12¢ in the dollar have raised expectations that Westpac Banking Corporation and the Commonwealth Bank of Australia could offload their already written-down $315 million exposure to the bankrupt group and finally take a hair cut.

While the debt has not shown much liquidity over the past 18 months, two pieces of the loan are said to have changed hands recently. WestLB sold its $22 million position in the loan at about 12¢ in the dollar through Deutsche Bank a week and a half ago, following another $26 million sale by DBS Bank at a similar price a few months earlier.