Santander scores solution for costly undrawn revolver exposures

Santander
By Owen Sanderson
10 Feb 2020

Santander has bought credit protection on two portfolios of undrawn revolving credit facilities, taking advantage of a regulatory decision last year to sharply boost the efficiency of the protection. The deal points the way for banks to cut the costs of providing revolvers, which are usually extended as a ‘loss leader’ for a broader banking relationship.

Revolving credit facilities for investment grade borrowers are a necessary evil for a capital markets bank. A corporate will almost never mandate a bank on a bond deal or other piece of markets business unless the bank has joined its panel of relationship lenders — which means committing ...

Please take a trial or subscribe to access this content.

Contact our subscriptions team to discuss your access: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.