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 ?
The company also announced plans to exit most of its hull underwriting business within Syndicate 1200 because its recently recorded combined ratios are unsustainable.
'I left the syndicate and tried to lead a new life.
Moreover, the Media Syndicate submitted a number of comments to the council, but did not consider most of them, Seham said.
'Our investigation found that the syndicate has been operating from the bungalow for almost a month and they targetted mostly gamblers from Hong Kong, China and Taiwan.
The syndicate members were of the view that since the university administration didn't complete homework, the syndicate could not approve the proposals.
The Syndicate approved to grant 15 PhD degrees to the candidates of different faculties.
A long awaited step, the revised service statues of employees of grades 1 to 21 were also recommended by the syndicate.
There will be prerequisites for admission to the syndicate, such as having one year's experience for newly graduated students, he added.
Agustin Gargallo, a director on the New York syndicate debt covering emerging markets, will relocate to Hong Kong.
Marking the first time that a Chinese-owned company has established a Lloyd's syndicate writing open market business, the formation of the China Re syndicate is expected to underwrite premiums of approximately GBP120m in 2015.
All are members of the Maerdy Social Club Syndicate who plan to celebrate their luck by jetting off to Las Vegas for a high-class knees-up.
As many as 9 members of the Syndicate strongly supported the lease agreement while on the suggestion of government representatives, the Syndicate decided that approval will be taken from the Chancellor before signing the agreement.

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