Syndicated loan

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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