Syndicated loan: Difference between revisions
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imported>Doug Williamson (Add Debt capital markets category.) |
imported>Doug Williamson (Expand to address three types of deal and link to those three pages. Source: LMA Guide to Syndicated Loans and Leveraged Finance Transactions Oct 2013 page 5) |
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Non-bank lenders are particularly attracted to fully drawn, often fixed rate tranches of a loan rather than rather than revolving or stand-by tranches. | Non-bank lenders are particularly attracted to fully drawn, often fixed rate tranches of a loan rather than rather than revolving or stand-by tranches. | ||
Three types of syndicated loan deal are: | |||
# An [[underwritten deal]] | |||
# An [[best-efforts deal]] | |||
# A [[club deal]] | |||
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* [[Arrangement fee]] | * [[Arrangement fee]] | ||
* [[Bilateral]] | * [[Bilateral]] | ||
* [[Foreign bond]] | * [[Foreign bond]] | ||
* [[Loan Market Association]] | * [[Loan Market Association]] | ||
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[http://www.treasurers.org/syndicatedloan Syndicated loans: non-bank lenders; credit derivatives and loan pricing, ACT 2007] | [http://www.treasurers.org/syndicatedloan Syndicated loans: non-bank lenders; credit derivatives and loan pricing, ACT 2007] | ||
[[Category: | [[Category:Long_term_funding]] | ||
[[Category: | [[Category:Long_term_funding]] | ||
Revision as of 16:55, 8 November 2013
A loan from a number of different lenders acting collectively.
Historically the lenders were normally banks, acting through an 'agent bank'.
More recently some 'non-banks', notably hedge funds or pension funds, will also be parties to syndicated loans – in the primary market for sub-investment grade and, in the secondary market more widely too.
Non-bank lenders are particularly attracted to fully drawn, often fixed rate tranches of a loan rather than rather than revolving or stand-by tranches.
Three types of syndicated loan deal are:
See also
Other links
Syndicated loans: non-bank lenders; credit derivatives and loan pricing, ACT 2007
