Get to Know Syndicate Desk
A syndicate desk is a team of people involved in performing research, marketing, pricing loans, stocks and bonds of companies. If your company is planning to launch or issue a new financial deal to roll out in the market, you have to take the help of your syndicate desk. Thus, the syndicate desk plays a significant role in the process of mobilizing finances and other tasks for your company.
How does the syndicate desk work?
When the research document is ready, the team submitted to the company intending to launch the new deal.
How work syndicate desk in relation to other teams?
The syndicate desk has to work in close coordination with credit deviating desk, swaps desk, MTN desk, sales force, and investors. It has also to keep a careful watch on the secondary market, issuers, and research. Thus, the syndicate desk works with many teams. Each of the teams deals with a complex specialized task.
Syndicate desk related activities
Mobilization of loans
The syndicate desk is usually responsible for formulating the plan to float syndicate loans. However, this is not the only role that it plays. Readers may be aware a syndicate loan is one mobilized by a bank through many capital surplus lenders.
The purpose of syndicate loans
The Syndicate deals are meant for financing bigger deals. By this, the risk borne by the individual investor comes down significantly by expanding the base of the loan across several entities.
The task to trace and locate the lender is vested with the syndicate desk team. Now, it executes this task by estimating the loan terns through the necessary market research.
How does the syndicate desk work with other teams?
The syndicate desk has to work in coordination with other teams in the organization. The process involves origination, sale and trading loans.
Origination: The process of origination involves working with credit and coverage teams. The process involves specialist functionality performed accordingly to the guidelines on market conditions, price, trends expectation, pitching guiding and the like.
Syndicate and sales: The two teams (sales desk and syndicate desk) can perform unexpectedly. However, the sales desk has a better grip on how the market behaves.
A deal may involve an open market. It could also put a cap on banks list, or whitelists where the issuer plays a significant role.
Trading in loans: The syndicate desk is responsible to execute tasks in tandem with loan trading (for the outstanding loans) and optimizing the portfolio of the bank. Many banks operate based on the origination and distribute model. It’s also important to note that they operate on the trading book as well.
The syndicate desk is a team of professionals that functions in a synergistic way with other teams in the organization. It’s a team that can make mar the process of mobilization of the market in favor of the organization. It’s for this reason that financial entities lay great emphasis on such teams.