Intralinks for Financial Services—Syndicated Scoop is a newsletter providing a recap of the month’s top stories and insightful commentary related to the commercial and syndicated lending industry.
In this month’s Syndicated Scoop…
- Loan Syndication and Trading Association (LSTA) sheds light on Trump’s first 100 days in office
- Banks suffering from lower underwriting fees on European leveraged loans
- Citizens Bank appoints new head of corporate finance for commercial banking division
The LSTA discusses the impact on the loan market of Donald Trump’s first 100 days in office. What might happen to Leveraged Lending Guidance? Will there be a fix for risk retention? What are the means by which regulation can change? In summary, the LSTA states, “While much attention has focused on President Trump’s pronouncements via Twitter, the reality is that Washington remains Washington. To get appointments through, bills passed and regulatory rules fixed, the process remains the same – and remains slow.”
Sponsors of European leveraged loans continue to drive down fees and pricing protection, causing pressure on lenders’ earnings. Sponsors are asking banks to accept underwriting fees as low as 1.25% – 1.5%, a drop on the standard 1.75% payout seen for the past 12 months or so. Before that, underwriting fees could pay as much as 2% – 2.25%. One head of DCM said, “It is brutal out there. We are having to run faster and jump higher to make the same amount of money as in the past.”
Citizens bank appointed Ted Swimmer as Head of Corporate Finance and Capital Markets for Citizens’ commercial banking division. He will replace Bob Rubino, who is leaving to pursue other opportunities. Swimmer will report to Don McCree, Vice Chairman and Head of Commercial Banking.
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