I've seen this in some configurations where traffic is sent via a route-map
to an IP address that is on the same subnet as a router's loopback
interface.

Eg.

interface ethernet 0
 ip address 192.168.1.1 255.255.255.0
 ip policy route-map abc

interface loopback 0
ip address 192.168.255.1 255.255.255.0

access-list 100 permit ip 192.168.1.0 0.0.0.255 192.168.2.0 0.0.0.255

route-map abc permit 10
 match ip address 100
 set ip next-hop 192.168.255.2

Could anyone explain how having traffic routed via a loopback interface
might help in certain situations?

Thanks.

Regards,
Adrian


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