Syndicated loan

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.

See also

• Agent bank
• Arrangement fee
• Bilateral
• Club deal
• Foreign bond
• Tranche