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 ?
Established in 2004, Evolution Underwriting Group (Evolution) is a managing general agent which provides commercial insurance products and services tailored for the small-to-middle-market sector to its independent retail broker clients.
Peter Cullum, executive chairman of Towergate Underwriting Group, said: "Towergate has established an enviable reputation for specialist underwriting across a wide range of products and AIUA brings Towergate the opportunity to consolidate its rural product range and to make AIUA the focus of a significant division within Towergate".
Although the underwriting group is not completed, it reportedly will include Merrill Lynch & Co.
Pioneer Underwriters, the underwriting group within Minova Insurance Holdings, announced it has appointed Nick Greggains as CEO of Pioneer's U.S.
Bank of China has been instructed as the lead manager on the deal, with China Development Bank , China Construction Bank , Industrial and Commercial Bank of China, HSBC and Standard Chartered in the underwriting group.
25 November 2013 - Bermuda-based business services provider Enstar Group Ltd (NASDAQ:ESGR) said today that together with US private equity firm Stone Point Capital LLC it had completed the USD183m (EUR135.4m) purchase of UK-based underwriting firm Atrium Underwriting Group Ltd from Bermuda-based Arden Holdings Ltd.
Amlin plc, a British-based specialist insurance and reinsurance underwriting group, will occupy the remaining 3,500 square feet.
The primary project team included three members of the underwriting group and six members of information technology.
The offering will be managed by an underwriting group led by BancBoston Robertson Stephens and which includes Donaldson, Lufkin & Jenrette and Volpe Brown Whelan & Co.
London-based Pioneer Underwriters, the underwriting group within Minova Insurance Holdings Ltd., operates Pioneer Syndicate 1980.
The underwriting group making the public offering is led by BofA Merrill Lynch, JP Morgan and Barclays, who are acting as lead book-runners, while Citigroup and Raymond James are acting as joint book-running managers and Mizuho Securities as a co-manager.
The offering is being made through an underwriting group led by Goldman, Sachs & Co., UBS Investment Bank and Baird, who are acting as joint book-running managers for the offering.