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A Global Overview of the Syndicated Loans Market

  • Yener Altunbaş
  • Blaise Gadanecz
  • Alper Kara
Chapter
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

Syndicated loans are credits granted by a group of banks to a borrower. They are hybrid instruments combining features of relationship lending and publicly traded debt. They allow the sharing of credit risk between various financial institutions without the disclosure and marketing burden that bond issuers face. Syndicated credits are a very significant source of international financing, with signings of international syndicated loan facilities accounting for no less than a third of all international financing, including bond, commercial paper and equity issues (Figure 2.1). This chapter describes the functioning of this increasingly global market, focusing on participants, pricing mechanisms, primary origination and secondary trading.

Keywords

Credit Risk Secondary Market Loan Portfolio Primary Market Relationship Lending 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Yener Altunbaş, Blaise Gadanecz and Alper Kara 2006

Authors and Affiliations

  • Yener Altunbaş
    • 1
  • Blaise Gadanecz
    • 2
  • Alper Kara
    • 3
  1. 1.University of WalesBangorUK
  2. 2.Bank for international SettlementsSwitzerland
  3. 3.University of LeicesterUK

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