2b) What is a distress loan? A loan that is not expected to be paid at the face value and/or is trading at or near a rate that is less than or equal to 90 percent of face value are indicators that a loan may be a distressed loan. The term can be loosely defined as the debt of companies that have filed for bankruptcy or have a significant chance of filing for bankruptcy in the near future.
2c) How has the portion of loans classified as distressed changed during this period? …show more content…
Bookrunner? The Bookrunner is one or a small group of commercial or investment banks which takes overall control of structuring, pricing and inviting other lenders into a loan syndication. Typically, in a syndicated loan facility, the initial lenders of the loan also having the title of Lead Arranger. In most transactions, the Lead Arranger drives the deal; sets the terms; interfaces with the client and investors; prepares, negotiates, and closes documents; and manages the syndication process. Consequently, the Lead Arranger generally receives premium compensation, which increases with the complexity or difficulty of the financing.
3b) Who is the lead arranger of secondary loan market trading? According to league tables compiled by Thomson Reuters, Bank of America Merrill Lynch is the top U.S. Lead Arranger in first quarter of 2015.
3c) Briefly describe this primary arranger and identify a significant event that occurred to this entity during the financial