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CFA Level I · CFA Level I Exam · Fixed-Income Markets for Corporate Issuers

Compared with a bond issued in the public market, a syndicated loan arranged for a corporate borrower is most likely to:

A syndicated loan is most likely funded by a group of lenders led by an arranger bank under a single loan agreement. This spreads the credit exposure among several lenders. Public registration, exchange listing and broad retail ownership are features of bonds, not of syndicated loans.

  1. Abe held by many retail investors through a public exchange listing.
  2. Bbe funded by a group of lenders led by an arranger bank under one loan agreement.Correct
  3. Crequire the borrower to register the facility with a securities regulator.

Explanation

A syndicated loan is offered by a lead arranger to a group of lenders, who each fund a share under a single agreement. Bonds, not loans, are typically registered, listed and sold to many investors, so the other options describe public bonds.

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