syndicate

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Syndicate

A group of banks that acts jointly, on a temporary basis, to loan money in a bank credit (syndicated credit) or to underwrite a new issue of bonds.

Syndicate

1. In banking, a group of banks that each lend an amount of money to a borrower, all at the same time and for the same purpose. The banks in a syndicate cooperate with each other for the duration of the project, even if they are otherwise competitors. Bank syndicates usually only lend large amounts of money. Every syndicate is a temporary arrangement.

2. In investment banking, a group of underwriters responsible for placing a new issue of a security with investors. As with banking syndicates, the members of an underwriting syndicate work together for the duration of the project. Every syndicate is a temporary arrangement. It is also called a purchase group or a selling syndicate.

syndicate

A combination of investment banking firms that bids on a new security issue and then sells it if the bid is successful. The syndicate disbands when the security offering has been completed. Syndicates are needed to spread the risk and obtain greater financial and marketing resources for large issues. Also called purchase group, underwriting syndicate. See also agreement among underwriters, breaking the syndicate, selling group.

syndicate

To distribute shares of ownership in a partnership or joint venture. For example, a brokerage firm may syndicate ownership in certain oil and gas properties.

Syndicate.

When a group of investment banks works together to underwrite and distribute a new security issue, they are acting as a syndicate.

Syndicates are temporary, forming to purchase the securities from the issuer and dissolving once the issue is distributed.

However, new syndicates, involving some of or all the same banks, form on a regular basis to underwrite each new issue. You may also hear these underwriting syndicates called purchase groups, underwriting groups, or distributing syndicates.

In other financial contexts, syndicate may refer to any group of financial institutions that works together on a particular project. Syndicate also describes a group of investors who make a joint investment in a company.

syndicate

A method of selling real property in which a sponsor—the syndicator—sells interests to investors. At one time limited partnerships were the preferred vehicle.Today tenant-in-common properties (TICs) are extremely popular.

References in periodicals archive ?
Howard Greene, RIMS director of governmental affairs, spoke in favor of the bill (see last month's RM Spectrum) but recommended several amendments, including permitting associated and parent organizations to assist in capitalizing a risk retention group without becoming an insured or group member; permitting an association or sponsoring entity to own a risk retention group even if some of its members are not members of the group; adding surety bonds to the definition of insurance; clarifying securities laws exemption provisions to include groups set up under a holding company structure; and clarifying purchasing group provisions to ensure that insurers of purchasing groups meet capital and surplus requirements in a single state only.
He did, however, say the NAIC favored provisions that required minimum financial requirements regarding purchasing group insurers and possibly risk retention groups.
Once the home builder understands the liability for employees' injuries and looks at the reduced cost offered by an affinity purchasing group, the business decision is clear," says Anne Davis, vice president of sales and marketing for HIA, Dallas.
This relationship with Premier, which has become our primary purchasing group, has been extremely beneficial.
Keep your options open when considering a purchasing group or an alliance.
Today, Texas Mutual Insurance Company announced a purchasing group dividend(a) to TGI in excess of $72,000.
For more information about the TGI purchasing group, contact Anne Davis at Hotchkiss Insurance Agency by email at sales@hiainc.
DALLAS -- Response to the newly created Texas Green Industry (TGI) purchasing group has exceeded all expectations, according to Texas Mutual Insurance Company, the group's underwriting carrier.
For more information about the THB purchasing group, ask your insurance agent, or contact Sue Treece at Hotchkiss Insurance Agency by email at streece@hiainc.
HIA) announced its newest workers' compensation purchasing group today: the Texas Home Builders Workers Compensation Group (THB-WC Group).
A safety program with a comprehensive safety manual, designed specifically for the home builder, is delivered to every policyholder in the THB-WC Purchasing Group.
By giving users the ability to track and analyze incentive programs at virtually any level -- by customer, product category, line item, region, brand, purchasing group, contract, program type, or any combination thereof -- it provides manufacturers with the tools and hard data needed to understand which types of programs work best with different products, customers, or objectives.

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