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

Street Talk understands two pieces of the loan have changed hands recently. WestLB sold its $22 million position at around 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.