Corporate syndicated loans held with a bare trustee
IAM Capital Markets and Trustees Australia Limited offer wholesale clients the opportunity to invest in syndicated loan facilities, providing investors with access to higher risk-return investment options relative to bond investments.
Syndicated loans are loans to one borrower by a group of banks and/or institutional lenders. This class of investment gives wholesale clients access to investments which are generally senior secured instruments issued by corporate borrowers which have passed the due diligence review and credit assessment processes of multiple financial institutions.
Similar to bonds, syndicated loans are debt obligations of the relevant borrower/issuer and pay periodic interest payments to investors, however they often have shorter tenors than bonds and are held in a bare trust on behalf of investors.
Syndicated loan investing
Loan syndication typically allows the lenders to share credit and other risk exposure of the loan between the members of the syndicate, with each member typically performing their own due diligence on the transaction and the borrower. Syndicated loan investment opportunities for IAM wholesale clients arise when a new loan is being issued and IAM is a member of the syndicate, or when an existing syndicate member of a loan seeks to exit their position.
IAM Research Hub
IAM Capital Market’s Credit Strategy team provides investors with detailed issuer and issue specific credit and relative value opinions to assist with the investment decision making process.