Levfin VS Leveraged Lending?
What’s the difference? Is there overlap in skill set between the two ? Anyone feel free to chime in.
What’s the difference? Is there overlap in skill set between the two ? Anyone feel free to chime in.
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Had to say without knowing a bit more detail about the banks - I've seen some "Lev Fin" groups at commercial banks do balance sheet holds for instance whereas at an IB it's more underwrite and syndicate. I assume Leveraged Lending would be more of the former
But don’t some of the banks like a BOFA or JPM also hold a portion of what they’re syndicating out ?
At an IB, LevFin also holds a portion of the syndicated loans.
Do they analyze this part of the loan in lev fin? Or does wholesale credit typically analyze this portion of the loan?
Leveraged finance is the IB product team responsible for executing levered debt transactions for the client. This could mean high yield bonds, institutional terms loans, or pro rata term loans. If it’s pro rata, that means the loan is being syndicated out to a group of banks for them to hold on their balance sheet.
Leveraged lending is a term that could be used with respect to a bank holding a high-risk syndicated loan (risk that maps out to
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