![]() The key roles in the market for syndicated loans are: Left-lead or Physical bookrunner: this involves the same functions as the active bookrunner, only for high yield issuances ( bonds issued by companies that are not investment grade).Consequently, they receive much lower fees. They do not perform a function as such, and their role is therefore junior. Co-manager: this is a role that issuers give to entities with which they have some form of cross sell commitment.Passive bookrunner: while not actively involved in placing the bond, and therefore not having access to managing the books, they are included in a higher level and usually receive the same fees and league table credit. ![]() They also organize calls with investors and accompany the issuer on the roadshow. They are responsible for keeping the investor order book and determining the final assignment to each investor, and for keeping the documentation for the issue, which they usually entrust to an external legal advisor. Active bookrunner: a group of banks designated by the issuer to place the issuance.There are four key roles in bond issuances: The most important roles for each financial format are described below. However, the meaning of these terms differs depending on the type of financial instrument involved if we are talking about a bond or a syndicated loan for example. The recognition the deal attracts in the market also adds additional value. In other words, the role the financial entity is playing is determined by the tasks it performs and its leadership of the transaction, with the roles with the most involvement receiving the highest fees. One of the main ways of distinguishing among these roles is the level of involvement and volume of work they entail. It is important to differentiate between both means of financing and understand their characteristics in order to know their true essence. These are two conceptually different credit products that are sometimes confused. Bonds and loans are financing instruments used at one moment or other by companies during the course of their existence.
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