Talk:Syndicated loan
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This is an assertion without evidence: "If the banks cost of funds is a hypothetical 5 %, it needs to charge more than 10 % interest on the loan to make a profit."
Perhaps it should say "If the banks cost of funds is a hypothetical 5 %, it may feel that it needs to charge more than 10 % interest on the loan to make a profit." (Which is more acceptable to state without support.)
Or "If the banks cost of funds is a hypothetical 5 %, it needs to charge more than 5 % interest on the loan to make a profit." (Which is self evident.)
- Isn't the point of that example dependent on the idea that 5% of the loans aren't repaid? In which case your expected return is .95*(1+r)-(1+.05) (i.e., 1.05*X goes out the door and (1+r)*.95*X comes back, so your profit is the difference) and solving for r=1.05/.95-1 yields a breakeven of just over 10%. It's obviously an oversimplified example, but the point of syndication is to spread around the risk of not getting paid back, not jsut make a profit. Your example would apply to any loan. Afelton 20:42, 18 October 2006 (UTC)
[edit] No References
Hi,
Please supply a reference for the information for rankings, otherwise I will remove.
Cheers muj --ImperialCollegeGrad 16:14, 4 April 2007 (UTC)
[edit] Parochial & Patronising
Don't want to edit main page, might screw it up, but the EMEA syndicated loan market is not 'much smaller'. 2007 YTD (06/09) volumes from Loanware - United States 1,547,587.20 vs EMEA 1,163,900.30. Europe's also notable for having several loans larger than the largest US deal. http://gib.dealogic.com/ —Preceding unsigned comment added by 141.228.106.137 (talk) 13:04, 6 September 2007 (UTC)
Someone's changed it, it's still nonsense and to boot incredibly US-centric. The European synloan market is in no way run by the American banks - the only ones with any leadership are Citi, JPM and to a lesser extent BoA. Here's the bookrunner league table as of today for EMEA '07 - again from dealogic
1 RBS 71,174.46 72 9.17 2 Barclays Capital 52,796.74 52 6.80 3 BNP Paribas 44,228.42 116 5.70 4 SG Corporate & Investment Banking 43,191.25 55 5.56 5 Citi 39,922.03 65 5.14 6 Deutsche Bank 36,892.85 23 4.75 7 Calyon 35,045.83 67 4.51 8 ABN AMRO 32,001.02 32 4.12 9 UBS 25,055.40 5 3.23 10 HSBC 19,973.69 32 2.57
Count 'em. ONE US bank. —Preceding unsigned comment added by 141.228.106.137 (talk) 13:34, 13 September 2007 (UTC)
