Bank of America is waiving assignment fees for lenders and agents trading B of A-led loans. The move excludes loans that are traded through an agent that does not waive assignment fees for the benefit of B of A. JPMorgan is now the as the only major bank remaining that still charges assignment fees. B of A officials declined to comment beyond a released statement.
The move was welcomed by other banks that have campaigned to rid the market of assignment fees. Barry Zamore, managing director of the syndicated loan group at Credit Suisse, said BoA's decision is long overdue. Credit Suisse eliminated assignment fees in 2001. "I think it is awesome," said Zamore. "Two years ago there were only a couple of shops charging these fees. JPMorgan is now the only major shop. We hope the buyside will continue to convey the message that assignment fees hurt the liquidity of the loan market." A JPMorgan spokesman declined to comment.
In January, B of A reduced the level of assignment fees on B of A-agented deals to $1,000 from $3,500 for up to four sub allocations.
