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 ?
30, 2018, requiring all surplus lines policies procured for purchasing groups to be filed with SLTX.
Members of the Purchasing Group generally did not communicate with the individuals from whom they purchased First Western shares.
For example, we have seen liability insurance offered to camps through risk purchasing groups with limits of liability for sexual abuse and molestation as low as $25,000.
A risk purchasing group comprises insurance buyers who band together, typically on a national basis, to purchase their liability insurance coverage from an insurance company, including a company operating on an admitted basis, a surplus lines basis, or a risk retention group.
(NYSE:DJO), a designer, manufacturer and marketer of products and services for the orthopedic sports medicine market, has signed its fourth contract with HealthTrust Purchasing Group (HPG), a leading group purchasing organization (GPO) that serves more than 800 healthcare facilities nationwide.
HealthTrust Purchasing Group (HPG), Nashville, TN, has awarded Medline Industries, Mundelein, IL, a dual source $150 million agreement to provide its "Proxima" line of surgical packs and gowns to its healthcare members.
The business unit purchasing group was augmented by a corporate purchasing group, with about 30 percent of each corporate-level purchaser's time allocated to cost reduction projects for the business unit.
Thirty percent of the rebated monies will go directly back to the local church or purchasing group; the other 70% will go into a national housing fund to bankroll a home ownership program.
Michael Bailit, Assistant Commissioner of Managed Care for the Massachusetts Medicaid Program, reasoned that by combining the State's purchasing power with that of large employers, a combined purchasing group could achieve negotiating power over managed-care plans that no single purchaser acting alone could.
The IRS and the Treasury believe that applying the reorganization rules to the target and purchasing group in mergers and similar transactions following a QSP is the simplest and most effective means of achieving the congressional intent in repealing the Kimbell-Diamond doctrine.
Many associations find that converting their sponsored program to a purchasing group, as permitted under the Risk Retention Act, helps achieve exclusivity and relevance.
The major differences between the deal and an offer rejected by the province in June are a $20-million increase in Kimberly-Clark's loan to the employee purchasing group and an increase in the group's stake in the Kapuskasing mill.

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