Small syndications key amid banks’ price uncertainty

04 Oct 2011

Ballooning bank funding costs and fears over the future health of Europe have injected a dangerous dose of uncertainty into Asia’s loan market. While this has caused some banks to trigger market disruption clauses in their loans contracts, most bankers think that is unlikely to happen en masse. Smaller deals, and limited syndications, will define the rest of the year.

European banks have seen their funding costs soar over the last few months, and loans bankers now say it is hard for

them to set realistic minimum prices for new lending. That could cull volumes in the market for the rest of the year.

"The way funding costs are ...

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