JPMorgan, Bank of America, Citi and Credit Suisse hope more banks will join their syndicated loans platform Versana. Greater efficiency and transparency could also attract new capital to the market.
On Wednesday March 16, Versana, a new fintech backed by four of the world’s largest banks, became the latest company to declare its ambition to use digital technology to bring new efficiency to the still largely analogue and slow-moving private market in syndicated loans
It is a large market, today worth roughly $5 trillion, and likely to grow even bigger in the years ahead. That is because syndicated loans pay a floating rate of interest, protecting lenders, including a growing array of institutional investors alongside the traditional banks, against the losses rising rates are now inflicting on fixed-rate bonds after their decades-long bull run.
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