Debt syndication: Risk takers no longer required

The return of hard underwriting on recent bond deals underscores how mundane and risk-free the business had become.

Current debt syndication practices have been in place in Europe for well over eight years; such a long time that it’s easy to forget what previous customs prevailed. Back in the bad old days, syndication was a far wilder affair. There are those who look back longingly to earlier eras, arguing that you do not need to be a risk taker to work on syndicate any more. Syndication has descended into an administrative function, they say.

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