DCM

Amortising principal, floating interest rates, funded from the bank balance sheet and with flexible structures, describes what?

• Long term bank loans

• Commercial paper

• Overdrafts

• Bonds

The following is true of a Private Placement

• Smaller participating banks get the same deal as large banks

• They are borrowing agreements that are rated and sold to the general public

• They are borrowing agreements that are often unrated and sold to sophisticated investors

• They are borrowing agreements that are listed on exchanges

Overdrafts, revolving credit facilities, letters of credit and commercial paper can all be described as

• Short term debt instruments

• Long term debt instruments

• Equity instruments

• Tradable securities

Loans are generally priced cheaper than bonds of similar features due to its

• Floating interest rate

• Flexible structure

• Amortising principal which lowers credit risk

Loans to corporate clients rated A+ will have lower risk weight than those rated BB+ based on regulatory capital requirement.

• True

• False

How might you best define a syndicated loan?

• A large-sized loan with a certain maturity

• A small-sized loan with a certain maturity

• A large-sized loan with a uncertain maturity

• A short-term loan with unknown repayment source

What is the debt alternative to bank financing for issuers who are unrated, or for some other reason not able or willing to efficiently tap the public bond market?

• Private placement

• Bilateral loan

• Convertible bond

• Mezzanine debt

Which role in a syndication loan acts like a sub-contractor for the borrower, handling the paperwork and administration of its banks?

• Bookrunner

• Mandated Lead Arranger

• Agency

• Participating bank