Our findings cannot be fully explained by alternate hypotheses that only emphasize pecuniary losses incurred by the lead arranger or poor investment prospects in the lead arranger's area of specialization. Overall, our findings support the notion of borrower bankruptcy damaging the lead arranger's reputation, and highlight the importance of lead arranger reputation in the loan syndication market. The negative consequences of borrower bankruptcy are stronger for small lead arrangers and are weaker in years when several other lead arrangers also suffer borrower bankruptcy. Der (Sole mandated lead arranger) oder die Konsortialführer (Joint mandated lead arrangers) übernimmt als primus inter pares die Koordination zwischen dem Konsortium und dem Bankkunden sowohl bei der Erstellung des Konsortialvertrages als auch bei der Abwicklung des Konsortialgeschäfts. Other lenders are in general less willing to participate in the lead arranger's syndicates, but this effect is weaker in case of lenders that have done several deals with the lead arranger in the past. The MLA is often on a fully committed basis. Controlling for loan amount and borrower fixed effects, the lead arranger syndicates loans less often and finances a larger percentage of the loans that it does syndicate. The bank that is contacted by the borrower is the lead arranger or Mandated Lead Arranger (MLA) in its loan. Many translated example sentences containing 'lead arranger' German-English dictionary and search engine for German translations. A syndicate is a group of underwriters responsible for placing a new issue of. The lead arranger shifts lending to less risky borrowers and is more likely to include security and restrictive covenants in its loans. In investment banking, an underwriting firm that leads a syndicate. Also, as bookrunner, a lead arranger manages the syndication process, determines the loan pricing, tiers and titles (brackets) offered, allocation to each lender, and the final composition of the syndicate.
Consistent with a reduced syndication ability, there is a drop in the lead arranger's aggregate level of activity in the loan syndication market. The lead arranger is responsible for negotiating the key terms and facility covenants and assigning the syndicate roles and titles.
What is the role of lead arranger reputation in the loan syndication market? We answer this question by examining the impact of borrower bankruptcy - which we use to identify loss of reputation - on a lead arranger's ability to syndicate future loans.
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