Syndication

slicing a large loan into pieces for many banks

In more detail

Slicing a large loan into pieces and handing them out to other banks: the arranger structures the deal, keeps a piece and a fee for itself, and sells the rest.

It was invented because of size: a project can be bigger than any one institution is prepared to take on, and walking away from the deal is a pity.

Covered in the primer of chapter 5.

Where it appears in the course

In the academy “Syndication” is not a definition but an operation: you post it yourself and watch what it does to the balance sheet.

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