Syndicated Lending: Basics

Syndicated Lending: Basics

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

Banks often spread their exposure to large loans to reduce the risk of the borrower defaulting. Depending on the size of the loan, there may be a small or large syndicate of banks to share the risk. Here we look at the motives for syndicated lending and how the market works for term loans and revolving loans.