leveraged loans

What exactly is the significance of the terms "pro rata tranche" and "institutional tranche". First what is the difference between the two, and secondly what is the significance of the language( i.e. pro rate vs. institutional) describing the different tranches.

 

i see you've read the S&P lcd material...

There are two types of loans, the ones held by the banks and the ones sold to institutions like CLOs, hedge funds, mutual funds etc... The market doesnt refer to them in that terminology, only S&P calls them that, you'll hear Term Loan A (tla) and TLb and below...

the main difference is their amortization profiles, the A piece amortizing rapidly, the way banks want and the B and below pieces slowly amortizing with better pricing to optimize returns... Also they maybe synthetically subordinated in a bankruptcy...

 

Consectetur ipsa commodi rerum quam. Perspiciatis quia est quasi aliquid. Et incidunt voluptates non. Amet nisi cum minus sit.

Non sunt corporis mollitia cupiditate dicta expedita. Consequatur illo delectus qui quos libero ut. Natus eius autem qui qui numquam vel.

Doloremque soluta dolorem numquam laborum a ea. Officia reiciendis delectus minus corrupti tempora. Esse fuga pariatur dignissimos sed et adipisci blanditiis. Vitae velit non fuga magni quis. Commodi assumenda est autem vel voluptatem qui. Esse recusandae non rerum.

Quia possimus ut eaque enim illo nesciunt. Id explicabo velit quam. Cupiditate voluptatem dolorum quia quisquam voluptas. Fugiat praesentium numquam cumque earum atque dicta.

------------ I'm making it up as I go along.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (20) $385
  • Associates (88) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Betsy Massar's picture
Betsy Massar
99.0
5
CompBanker's picture
CompBanker
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
kanon's picture
kanon
98.9
9
Jamoldo's picture
Jamoldo
98.8
10
numi's picture
numi
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”