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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
Agents or brokers who have previously filed a purchasing group policy with SLTX are not expected to retroactively apply the new button but should select it on any purchasing group policies moving forward.
There are several advantages of purchasing groups. Purchasing groups provide advantages for their members, their insurers, and the agents and brokers who administer the group programs.
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.
The business unit purchasing group usually initiated these efforts, often based on input from a product manager who had overall profitability responsibility for a product line.
This was the basic model used by the purchasing group for raw material costs which contributed to their success in cost reduction.
The term "principal place of business" for a purchasing group would require designation by the group, members within that state and maintaining an office within the state.
Amendments to the risk retention act proposed in the third initiative would assure that risk retention and purchasing groups are controlled by their members.
During the hearing Susan Howard, associate undersecretary for economic affairs for the Department of Commerce, recommended amendments to the act that would ensure membership control of risk retention and purchasing groups; preserve single state regulation; tighten state regulation of purchasing groups; and improve disclosure requirements regarding purchasing groups and their insurers.
In a recent survey of purchasing groups, 25 of the 31 responding groups indicated that, to increase their leverage, they used committed buying programs requiring members to purchase 70 to 100% of a product category under contract.
However, it also concluded that neither Section 4(f) nor any other provision of the Liability Risk Retention Act of 1986 preempts states from applying licensing requirements on insurers writing purchasing groups that do not directly conflict with the express preemption provisions in Section 4(a) of the act.
PHI/Presbyterian Homes, Inc.'s involvement with multiple purchasing groups and alliances has allowed this not-for-profit organization to enrich its core services
Many associations find that converting their sponsored program to a purchasing group, as permitted under the Risk Retention Act, helps achieve exclusivity and relevance.

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