Syndicated-loans meaning

Corporate loans that are purchased or traded by a group, or syndicate, of institutional investors or banks from the corporate debt issuer. Because these loans can total billions of dollars, each bank or institutional investor agrees to purchase only a portion of the loan amount in order to limit its risk that it might not be able to resell the loan. If the debt issuer later defaults, the bank’s risk of loss increases significantly.
0
0
Advertisement