What is a 'Syndicated Loan'?
Explanation
Syndicated loans allow lenders to spread the risk of a large loan to a single borrower.
Other questions
Which of the following timeframes defines 'Short term' in the fixed-income maturity spectrum described in the text?
In the Credit and Maturity Spectrum, which instrument is classified as a Risk-Free Short-Term investment?
What is the lowest credit rating on Moody's scale that is still considered 'Investment Grade'?
A bond originally rated Investment Grade that has been downgraded to Junk status is referred to as a:
Which of the following best describes a 'Best-efforts offering'?
What is the primary function of a 'Roadshow' in the context of bond issuance?
Which market is characterized as being mostly 'quote-driven' and 'over-the-counter' (OTC)?
What does the 'Bid-Offer spread' represent in secondary bond markets?
Which of the following bonds are typically the most liquid in the secondary market?
Which investor type is most likely to be forced to sell distressed debt due to policy limitations?
What is the key characteristic of an 'On-the-run' bond?
Which of the following describes a 'Re-opening' of an existing bond?
Primary market issuance of sovereign debt usually takes which form?
How is 'Intermediate term' defined in the text's Maturity Spectrum?
Which of the following is classified as a 'High Yield' instrument in the Maturity Spectrum?
In the context of secondary markets, which bonds generally exhibit the tightest bid-offer spreads?
What does a credit rating agency assess to assign a rating?
Secured bond issuance typically involves a process that is:
Which of the following is considered a 'Short term' 'Investment Grade' instrument in the provided spectrum?
What exception can increase the trading frequency of a seasoned bond issue?
Which S&P rating is the first to be considered 'High Yield' or 'Junk'?
A 'Debut Issuer' must typically complete which process to familiarize investors with the new entity?
Which type of offering allows only a selected investor or group of investors to buy the bonds?
Which of the following falls into the 'Long term' maturity bucket?
Asset-Backed Commercial Paper (ABCP) is classified under which maturity bucket?
Who are typically the buyers of distressed debt?
Which instrument is listed as 'Risk Free' and 'Intermediate term'?
Why do pension funds often sell distressed debt?
Which of the following is characteristic of a 'Secondary bond market'?
What does the term 'Tenor' refer to?
Which rating corresponds to Baa3 on Moody's scale?
Unsecured Corporate Bonds in the 'High Yield' category are typically found in which maturity buckets?
What distinguishes an 'On-the-run' bond from an 'Off-the-run' bond?
Which of the following implies that a bond is 'Investment Grade'?
What is 'Asset-Backed Security (ABS)' categorized as in the Maturity Spectrum?
If a dealer bids 99.50 and offers 99.60 for a bond, what is the bid-offer spread?
Which of the following is an example of a 'Secured' debt instrument in the Investment Grade category?
What typically happens to the equity of an issuer when its debt becomes 'Distressed'?
Which of the following best defines a 'Public Offering'?
What is the typical use of 'Commercial Paper'?
Which market participant is most likely to provide 'Liquidity' in a quote-driven market?
What is 'Leveraged Loan' classified as?
Generally, how does the liquidity of a bond from a frequent corporate issuer compare to that of an infrequent issuer?
A 'MBS' (Mortgage Backed Security) typically falls into which maturity category?
What does a 'Repo' (Repurchase Agreement) represent in the Maturity Spectrum?
Which of the following implies that a bond is 'Speculative Grade'?
In a 'Firm Commitment' underwriting (implied by contrast to Best Efforts), the risk of unsold bonds is borne by:
What generally happens to the bid-offer spread as a bond becomes 'Seasoned' (Off-the-run)?
Which entity typically leads a sovereign debt auction?