Consider the following two syndication strategies for a $3.3 billion loan: Structure A Number Underwritten...
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Consider the following two syndication strategies for a $3.3 billion loan: Structure A Number Underwritten Individual Individual amount S/U Amount Allocation Lead Bank $3.300 $300 Sub-Underwriters o Participants 20 $150 Structure B Number Underwritten Individual Individual amount S/U Amount Allocation Lead Bank 1 $3,300 $660 $300 Sub-Underwriters 4 $660 $300 $200 Participants 9 Which of the following is not correct? The credit risk is the same for Structure A and Structure B. The borrower would prefer Structure A to limit release of sensitive information about their firm/project. The underwriting risk is higher with Structure A. The risks and rewards are the same for the underlying credit risk in either structure
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